Question

Any point inside a production possibilities curve indicates: Select one: a. unemployment and/or inefficiency. b. that the law of increasing opportunity costs is no longer valid. c. that society doesn't want more of either good. d. that economic growth is no longer possible.

Answer 1

Answer:

The answer is A. unemployment and/or inefficiency

Explanation:

Production Possibility Curve  is also known as production–possibility frontier is a curve that shows different ways in which two goods can be produced with a given resource and or technology.

Since resources are scarce, a choice has to be made between the alternative goods that can be produced. So there must be a choice f what to produce and how much to produce. If one resource is chosen, less of the other will be produced.

Any point inside a production possibilities curve indicates unemployment and/or inefficiency

A point outside the production possibilities curve is not possible