Figure 2-11

-With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

Question

Figure 2-11
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-With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

Quizplus · Accepted Answer

An economy can produce at points inside the production possibilities frontier, which represent inefficient production levels, but it cannot produce outside the frontier with its current resources and technology.

Figure 2-11 ​

Figure 2-11