Final answer:
The Production Possibilities Curve (PPC) in Economics represents the maximum output achievable with available resources and technology. An economy not efficiently utilizing its resources would operate below its PPC. Operating outside the PPC isn't possible under normal circumstances, as this would suggest an increase in maximum output beyond available resources and technology.
Step-by-step explanation:
In Economics, the Production Possibilities Curve (PPC) is a graphical representation of the maximum quantity of two goods that can be produced with fixed resources and technology, assuming full efficiency. If some resources go to waste instead of being used in production, then the economy would not operate on or outside of the curve, but below it.
Waste suggests inefficiency. Therefore, an economy not utilizing all its resources efficiently is likely to operate within or below the curve, not at its frontier or beyond. Remember, the PPC depicts maximum possible output with available resources and technology, under perfect conditions. Operating outside the curve suggests a scenario in which the economy has somehow increased its maximum output beyond these conditions, which is unachievable under normal circumstances.
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