A point outside a production possibilities curve indicates
A) that resources are not being used efficiently.
B) that resources are being used very efficiently.
C) opportunity costs are constant.
D) an output combination that is unobtainable with the current resource and technology levels.

Question

Quizplus · Accepted Answer

A point outside a production possibilities curve indicates an output combination that is unobtainable with the current resource and technology levels. This means that the economy cannot produce that particular combination of goods and services with the given resources and technology.

A Point Outside a Production Possibilities Curve Indicates