point lying inside (under) a production possibilities frontier indicates that _________. A. the economy is saving money. B. There are no associated opportunity costs. C. more output could be produced with existing resources. D. technology limits production

point lying inside (under) a production possibilities frontier indicates that _________. A. the economy is saving money. B. There are no associated opportunity costs. C. more output could be produced with existing resources. D. technology limits production

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section2.6: Sources Of Economic Growth

Problem 1YTE

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

Question

A point lying inside (under) a production possibilities frontier indicates that _________.
A. the economy is saving money.
B. There are no associated opportunity costs.
C. more output could be produced with existing resources.
D. technology limits production.

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A production possibility frontier shows the combinations of goods which could be produced with the current level of resources.

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Draw a production possibilities model with 4 points labelled A, B, C, D, one inside, two on, and one outside the production possibilities curve. Explain the 4 points in terms of scarcity, choice and efficiency.
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