An inefficient use of resources can be illustrated using a production possibilities curve as:
A)a movement to the northeast along the curve.
B)a movement to the southeast along the curve.
C)a movement off the curve in a northeast direction.
D)a movement off the curve in a southwest direction.

Question

An inefficient use of resources can be illustrated using a production possibilities curve as:
A)​a movement to the northeast along the curve.
B)​a movement to the southeast along the curve.
C)​a movement off the curve in a northeast direction.
D)​a movement off the curve in a southwest direction.

Quizplus · Accepted Answer

An inefficient use of resources would mean that the economy is producing a combination of goods that is below its production possibilities curve. This would be represented by a point inside the curve. A movement off the curve in a southwest direction, where the economy produces less of both goods, would indicate an inefficient use of resources.

An Inefficient Use of Resources Can Be Illustrated Using a Production