Points that lie below the production possibilities curve are inefficient because:
A) more of one or both goods could be produced using currently available resources without giving up production of another good.
B) producers are not specializing.
C) producers face scarcity.
D) too many goods are being produced.

Question

Quizplus · Accepted Answer

Points that lie below the production possibilities curve represent a situation where resources are not being used to their full potential, indicating that more of one or both goods could be produced without sacrificing the production of another good. This inefficient use of resources is the result of not maximizing production with the resources available, which is why it is inefficient.

Points That Lie Below the Production Possibilities Curve Are Inefficient