201k views
0 votes
What would cause an economy to be producing at a point inside its production possibilities curve?

User Greyshack
by
5.5k points

1 Answer

5 votes

Answer:

The correct answer is: the lack of effectivization in the use of their resources inside the economy to obtain the best outcomes possibles.

Step-by-step explanation:

To begin with, in the economic theory the term known as production possibilities curve refers to a strategic tool, a graphic that can be used by the professionals of the area in order to understand how the economy is working with its resources, if the economy is producing well enough then the economy should be getting great development results and the point inside the graphic should be in the limit of the curve, but if the point is in the inside of the curve then that means that the resources inside that particulary economy are not being fully use to their best in order to obtain the best outcome so that will explain that there is still possibility to expand the production according to the theory of the tool itself.

User Figar Ali
by
5.6k points