A point outside a production possibilities curve indicates
A) that resources are not being used efficiently.
B) an output combination that society cannot attain given its current level of resources and technology.
C) that resources are being used very efficiently.
D) that both goods are characterized by increasing costs.

Question

Quizplus · Accepted Answer

A point outside the production possibilities curve represents an output combination that cannot be produced with the current level of resources and technology. It is beyond the maximum potential production limit, and therefore, cannot be attained.

A Point Outside a Production Possibilities Curve Indicates