If an economy is operating at a point inside the production possibilities frontier, then
A) societyʹs resources are being used to produce too many consumer goods.
B) the PPF curve will shift inward.
C) societyʹs resources are being inefficiently utilized.
D) economic policy must retard further growth of the economy.

Question

Quizplus · Accepted Answer

If an economy is operating inside the PPF, it means that the available resources are not being used efficiently. This could be due to the lack of technology, skills, or adequate capital. As a result, the economy is producing less than its maximum potential.

If an Economy Is Operating at a Point Inside the Production