Question

If production of two goods is currently at levels such that we are inside the production possibilities curve

production is inefficient.


in order to produce more of one good, we must produce less of the other.


we are in the "unattainable" region.


it is not possible to produce more of both goods.

Answer 1

The correct statement is:

- We are in the "unattainable" region.

When production is inside the production possibilities curve (PPC), it means that the economy is operating below its maximum potential and is not utilizing all available resources efficiently. The unattainable region refers to points outside the PPC, where the combination of goods cannot be produced given the current resources and technology. Moving to points within the PPC represents improved resource utilization and greater efficiency, while moving to points outside the PPC is not feasible without increasing resources or improving technology.