A point inside a society's production possibilities curve represents
A) an unattainable combination of outputs.
B) an output combination that satisfies the needs of the population.
C) an underutilization of productive resources.
D) a technically superior output combination.

Question

Quizplus · Accepted Answer

A point inside the production possibilities curve indicates that the resources are not fully utilized, which means there is underutilization. Therefore, option (C) is the correct answer. Option (A) is incorrect because an unattainable combination of outputs is represented by a point outside the PPC. Option (B) is incorrect because a point inside the PPC does not necessarily mean that it satisfies the needs of the population. Option (D) is incorrect because technical superiority is not represented by a point inside the PPC.

A Point Inside a Society's Production Possibilities Curve Represents