From a point inside the production possibility frontier,
A)more of one good can be produced only by sacrificing some output of another good.
B)it is possible to increase production of both goods.
C)it is impossible to increase production of either good with current resources and technology.
D)increased output of both goods can only occur if the production possibility curve shifts outward.

Question

From a point inside the production possibility frontier,
A)​more of one good can be produced only by sacrificing some output of another good.
B)​it is possible to increase production of both goods.
C)​it is impossible to increase production of either good with current resources and technology.
D)​increased output of both goods can only occur if the production possibility curve shifts outward.

Quizplus · Accepted Answer

From a point inside the production possibility frontier (PPF), it is possible to increase the production of both goods without sacrificing the output of one for the other, because the economy is not operating at its most efficient level.

From a Point Inside the Production Possibility Frontier