Consider a production possibility frontier for Canada.If in 2016 Italy's resources are not being fully utilized,Canada will be somewhere _____ of its production possibility frontier.

Question

Quizplus · Accepted Answer

If Italy's resources are not being fully utilized, it does not have an impact on Canada's production possibility frontier. Canada's production possibility frontier represents the maximum amount of goods and services that can be produced with the limited resources available in Canada. If Canada is not using all of its resources, it will be producing at a point inside the frontier, which means it is not achieving its full potential. Therefore, the best choice is A) Inside.

Consider a Production Possibility Frontier for Canada