If a society is operating at a point inside its production possibilities frontier, then this societyʹs
A) economy will grow too fast.
B) resources are being inefficiently utilized.
C) production possibilities frontier will shift rightward.
D) resources are being used in the most efficient manner.

Question

Quizplus · Accepted Answer

If a society is operating inside its production possibilities frontier, it means that it is not utilizing all of its available resources or it is utilizing them inefficiently. This could be due to a lack of technological advancement, inadequate investment in capital, or inefficient allocation of resources. Therefore, the best choice is B, resources are being inefficiently utilized.

If a Society Is Operating at a Point Inside Its