If an economy is producing inside the production possibilities curve,then
A)There is full employment of resources.
B)It is operating efficiently.
C)It can produce more of one good without giving up some of another good.
D)There are not enough resources available to produce more output.

Question

Quizplus · Accepted Answer

If an economy is producing inside the production possibilities curve, it means that it can produce more of one good without giving up some of another good. This indicates that the economy is not operating at its full potential and has the ability to increase its production of one or more goods without sacrificing the production of others.

If an Economy Is Producing Inside the Production Possibilities Curve,then