Asked by Durgesh Kumar on May 25, 2024
Verified
Points inside the production possibilities frontier represent:
A) full and efficient use of all resources.
B) inefficiency or unemployment.
C) currently unattainable combinations of outputs.
D) currently unattainable combinations of resources.
E) the most desirable combinations of outputs.
Inside The Frontier
A condition in which an economy is not operating at its full productive capacity, implying underutilization of resources.
Inefficiency Or Unemployment
Situations where resources are not fully utilized in the economy, leading to joblessness and wastage of economic potential.
- Recognize points of efficiency, inefficiency, and unemployment on the PPF.
Verified Answer
SA
salem abo loghodMay 25, 2024
Final Answer :
B
Explanation :
Points inside the production possibilities frontier represent inefficiency or unemployment because the economy is not using all of its resources to produce goods and services. Therefore, there is a potential for more output with the same amount of resources.
Learning Objectives
- Recognize points of efficiency, inefficiency, and unemployment on the PPF.