Question

If an economy operates at a point within its production possibilities curve, Question 20 options: it lacks the resources necessary to reach the curve. it is utilizing all of its resources efficiently. it does not confront the problem of scarce goods relative to unlimited wants. it is not efficiently using all of its resources.

Answer 1

Answer:

It is not efficiently using all of its resources.

Explanation:

PPC is the graphical representation of product combinations that an economy can produce, given resources & technology.

• Points on PPC reflect the best potential production of economy, by best efficient utilisation of available resources & technology.
• Any point under PPC reflects production under best potential of economy, by inefficient utilisation of resources.
• Points beyond PPC are unattainable, unless growth in either resources/ technology shifts the PPC curve outwards.