What happens when production is inside the production possibilities curve?(1 point)

Question

Responses

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 become less efficient, and eventually the curve will shift inward.
The production has become less efficient, and eventually the curve will shift inward.

The production has been made more efficient, and eventually the curve will shift inward.

Answer 1

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 its resources efficiently, leading to underproduction. This situation implies that there are idle resources or inefficiencies in production processes.