Final answer:
Inefficient use of a nation's technological know-how is depicted as a point inside the PPC, indicating productive inefficiency and wasted potential, since more could be produced with the available resources and technology.
Step-by-step explanation:
Inefficient use of a nation's technological know-how would not shift a nation's production possibilities curve (PPC) outward, since that implies growth. It would not be depicted as a point outside the PPC either, as points outside represent levels that are not attainable with the current level of resources and technology. Instead, inefficient use of technological know-how is represented by a point inside the PPC. This indicates that the economy is not achieving productive efficiency, as it is not producing as much as it could with its available resources and technology, leading to wasted potential.
The choices on the PPC, including points such as A, B, C, D, and F, illustrate productive efficiency: the condition where no additional output of one good can be obtained without decreasing the output of another good, given the technology and resources. Points inside the PPC, where more of one or both goods can be produced without sacrificing the other, indicate productive inefficiency.