When resources are being used inefficiently,the:

Question

Quizplus · Accepted Answer

When resources are being used inefficiently, it means that the economy is not producing the maximum possible output with the given resources. This indicates that the economy is operating at a point inside its PPF, as it is not fully utilizing all its resources to produce goods and services. Choice A is incorrect as that would indicate that the economy is producing more than its maximum possible output, which is not possible. Choice B is incorrect as an outward shift in the PPF would indicate an increase in resources or technology advancement, and not inefficient use of existing resources. Choice D is incorrect as that would indicate that the economy is using all of its resources efficiently, which is not the case in this scenario.

When Resources Are Being Used Inefficiently,the