Economics 9708 · AS & A Level · Production possibility curves

Production possibility curves — practice question

An economy is producing at a point inside its production possibility curve. Why is this called inefficient?

  • AIndividuals are enjoying too much leisure.
  • BMore of one good can be produced without decreasing production of another.
  • CThe combination of labour and capital is wrong.
  • DThere are shortages of some goods and an excess supply of others.

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