If an economy begins to use its resources less efficiently, it will move
A) to a point closer to its ppf.
B) to a point farther away from its ppf.
C) from a point along its ppf to a point outside its ppf.
D) from one point to another point along its ppf.

Question

Quizplus · Accepted Answer

When an economy uses its resources less efficiently, it will not be able to produce as much as before, leading to a point farther away from its production possibilities frontier (PPF), indicating underutilization of resources.

If an Economy Begins to Use Its Resources Less Efficiently