When an economy is operating inside its production possibilities frontier we know that :_________
a. the economy is operating with efficiency.
b. to produced more of one good, the economy would have to give up some of the other good.
c. moving to a point on its production possibilities frontier would be economic growth.
d. there are unused resources or inefficiencies in the economy.

When an economy is operating inside its production possibilities frontier we know that there are unused resources or inefficiencies in the economy.

What is the production possibilities frontier ?

The production possibilities frontier show the various combination of two goods that can be produced by an economy when its resources are fully utilized.

The production possibilities frontier is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good.

Point outside the curve means that the production level is not attainable given the level of resources. Points inside the production possibilities curve means that the nations resources are not being fully utilised

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