A point inside a production possibilities curve indicates
A) resources are not being used efficiently.
B) 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 inside the production possibilities curve indicates that resources are not being used efficiently. This is because the economy is producing less than it is capable of producing with the given resources and technology. It is possible to produce more goods and services by reallocating resources or increasing the level of technology.

A Point Inside a Production Possibilities Curve Indicates