All points inside the production possibilities curve indicate
A) a lack of sufficient supply.
B) inefficiency in production.
C) the law of increasing relative cost.
D) the law of decreasing relative cost.

Question

Quizplus · Accepted Answer

Points inside the production possibilities curve indicate that the economy is not producing at the maximum potential. This suggests that resources are either not being fully utilized or are being used inefficiently. Therefore, the correct answer is B) inefficiency in production.

All Points Inside the Production Possibilities Curve Indicate