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If an economy is inefficient, its actual output combination will lie ______ the production possibilities curve.

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User SDF
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1 Answer

3 votes
Inside.

If the economy is inefficient, its actual output combination will lie inside the production possibilities curve. This curve represents the opportunities for production in a given economy with the most efficiency being gained by producing along the curve. Any points within or inside the curve are considered inefficient, whereas points outside the curve are considered unavailable or inaccessible without changes in technology or innovation.
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User Bmavity
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