Producing at a point inside the production possibilities curve
A) Means society must be using its resources efficiently.
B) Is unattainable given the present level of technology.
C) Is feasible when the nation is at war but not feasible when the nation is at peace.
D) Suggests we are forgoing the ability to produce more of both goods. This is known as an inefficient point of production.

Question

Quizplus · Accepted Answer

Producing at a point inside the production possibilities curve suggests that we are not using all our resources efficiently and are forgoing the ability to produce more of both goods. This is known as an inefficient point of production.

Producing at a Point Inside the Production Possibilities Curve