A country's GDP is inside the frontier of the production possibility frontier.This could happen because of:

Question

Quizplus · Accepted Answer

If a country is inside the production possibility frontier, it means that it is operating below its maximum potential production level. This could happen during a recession when there is reduced demand for goods and services, leading to lower production levels. Technological change, economic growth, or lack of land resources would shift the production possibility frontier, but would not result in a country operating within the frontier.

A Country's GDP Is Inside the Frontier of the Production