Final answer:
When RAM is insufficient for all active programs, the system uses virtual memory, causes the CPU to transfer data between the RAM and storage drive.
Step-by-step explanation:
When RAM (Random Access Memory) is too small to hold all open programs and data. Virtual memory allows the system to compensate for the lack of physical RAM by temporarily transferring data to a designated area on the hard drive or SSD, called a swap file or page file.
Consequently, the CPU (Central Processing Unit) has to work harder to manage these transfers back and forth between the RAM and the storage drive. This process is significantly slower than accessing data directly from RAM because storage drives (especially hard drives) are slower than RAM.
The CPU will incur a performance penalty due to the increased time needed to retrieve data from the storage drive. This can lead to a situation known as thrashing, where the system spends more time swapping data than executing processes, which results in noticeable slowdowns and reduced efficiency.