Final answer:
A point inside the production possibilities frontier represents an economically inefficient allocation of resources, where not all resources are being fully utilized and production of goods can be increased.
Step-by-step explanation:
Points inside the production possibilities frontier (PPF) indicate an economically inefficient use of resources. When a point is on the frontier, it represents productive efficiency, meaning that it is impossible to produce more of one good without decreasing the quantity produced of another good. Therefore, a point inside the PPF, such as point F in your materials, signifies that not all resources are being fully utilized and it is possible to increase the production of one or both goods without sacrificing the other. In contrast, points on the curve reflect an efficient allocation of resources, where the specific mix of goods produced represents the allocation that society most desires.