Question
What happens when production is inside the production possibilities curve?(1 point)
Responses
The production has become less efficient, and eventually the curve will shift inward.
The production has become less efficient, and eventually the curve will shift inward.
It is not possible for the production to move inside the curve.
It is not possible for the production to move inside the curve.
The production is not maximized, so some resources are unused.
The production is not maximized, so some resources are unused.
The production has been made more efficient, and eventually the curve will shift inward.
Responses
The production has become less efficient, and eventually the curve will shift inward.
The production has become less efficient, and eventually the curve will shift inward.
It is not possible for the production to move inside the curve.
It is not possible for the production to move inside the curve.
The production is not maximized, so some resources are unused.
The production is not maximized, so some resources are unused.
The production has been made more efficient, and eventually the curve will shift inward.
Answers
GPT-4o mini
The correct response is: **The production is not maximized, so some resources are unused.**
When production is inside the production possibilities curve (PPC), it indicates that the economy is not utilizing all of its resources efficiently. This can happen due to factors like unemployment or underemployment of resources. The PPC represents the maximum possible production levels when resources are fully and efficiently employed.
When production is inside the production possibilities curve (PPC), it indicates that the economy is not utilizing all of its resources efficiently. This can happen due to factors like unemployment or underemployment of resources. The PPC represents the maximum possible production levels when resources are fully and efficiently employed.