Asked by David Tovar on May 14, 2024
Verified
A point inside the production possibilities curve illustrates a situation in which resources are not fully employed.
Production Possibilities Curve
A graphical representation that shows the different combinations of two goods or services that can be produced within a given resource constraint.
Fully Employed
A situation in which all available labor resources are being used in the most economically efficient way.
- Understand the significance and implications of the production possibilities curve.
- Learn about the efficiency represented by points on the production possibilities frontier.
Verified Answer
TT
Tanya TavarezMay 20, 2024
Final Answer :
True
Explanation :
If a point is inside the production possibilities curve, it means that the economy is not using all of its available resources to their full potential. Therefore, resources are not fully employed.
Learning Objectives
- Understand the significance and implications of the production possibilities curve.
- Learn about the efficiency represented by points on the production possibilities frontier.