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Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that:

a. the nation is producing an efficient combination of goods
b. there will be a large opportunity cost if the nation tries to increase production of any good
c. the nation is producing beyond its capacity, so inflation will occur
d. the nation is not using all available resources or is using inferior technology or both

Respuesta :

Manetho

Answer:

D

Explanation:

d. the nation is not using all available resources or is using inferior technology or both.

The PPF determines the boundary between those attainable combination of goods and services and unattainable combinations of goods and services. A point inside PPF could indicate that some resources are unemployed or some resources are misallocated.

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