If an economy is operating at a point inside the production possibilities frontier,then:
A)some of the nation's resources are unemployed.
B)the production decisions are made by the government.
C)unlimited resources must satisfy scarce desires.
D)using the existing resources efficiently will shift the production possibilities frontier outward.
E)society is paying too much for wages.

Question

Quizplus · Accepted Answer

Operating inside the production possibilities frontier means that the economy is not using all of its available resources, hence some resources are unemployed.

If an Economy Is Operating at a Point Inside the Production