Question

A shift of resources from one industry to another can be shown on the production possibility frontier as: a. an outward shift. b. a movement to a point inside the production possibility frontier c. a movement along the production possibility frontier d. an inward shift

Answer 1

A point inside the production possibility frontier represents an inefficient use of resources.

Step-by-step explanation:

A point inside the production possibility frontier represents an inefficient use of resources. It means that the economy is not producing at its full potential and is failing to fully utilize all available resources. Points inside the production possibility frontier indicate that there is room for improvement in resource allocation and efficiency.