Question

What is using fewer resources than an economy is capable of using called?

Answer 1

Using fewer resources than an economy is capable of using is called underutilization.

Answer 2

This situation is called underutilization. Underutilization is the state of not being used enough or not used to full potential.

Underutilizing resources can cause them to be produced in smaller numbers, giving way to an imbalance as the resources are no longer underutilized because there is no longer a surplus.