Thursday, May 24, 2012
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If an economy is operating at a point inside the production possibilities curve?

A) its resources are not being used efficiently.
B) the curve will begin to shift inward.
C) the curve will begin to shift outward.
D) This is a trick question because an economy cannot produce at a point inside the curve.


2 Comments

  1. A)

    it could produce more, but it isn’t. therefore it’s not producing to max efficiency.

  2. A. I agree with^