Any point inside the production possibilities curve indicates:
A)that resources are imperfectly shiftable among alternative uses
B)the presence of inflationary pressures
C)that more output could be produced with available resources
D)that the economy is saving a part of its income
E)that some of an economy's potential output is not desired by consumers

Question

Quizplus · Accepted Answer

Any point inside the production possibilities curve indicates that not all available resources are being used efficiently, meaning that more output could be produced with the resources available. This underutilization could be due to various factors such as unemployment or inefficiencies in production processes.

Any Point Inside the Production Possibilities Curve Indicates