In terms of the production possibility frontier, inefficient use of available resources is shown by:
A)an increase in the labor force growth rate.
B)a movement from one point to another along the production possibility frontier.
C)an inward shift of the production possibility frontier due to the lack of opportunity.
D)a point inside the production possibility frontier.

Question

Quizplus · Accepted Answer

A point inside the production possibility frontier indicates that the available resources are not being utilized efficiently, as the economy could produce more of both goods using the same resources if they were allocated optimally.

In Terms of the Production Possibility Frontier, Inefficient Use of Available