Final answer:
A point of underutilization on a production possibilities graph appears below or to the left of the PPF, indicating inefficient use of resources.
Step-by-step explanation:
The point of underutilization on a production possibilities graph would appear below or to the left of the production possibilities frontier (PPF). This is because underutilization represents a situation where the resources are not being used to their full potential, resulting in a production level that is inside the PPF. This scenario is considered inefficient as the economy could produce more of one or both goods without sacrificing anything, if resources were fully employed. It contrasts with points on the PPF, which represent efficient utilization of resources, and points beyond the PPF, which are currently unattainable given the limitations of resources.
The PPF is typically drawn as a curve, rather than a straight line, to illustrate the concept of increasing opportunity costs. As you produce more of one good, you have to give up an increasing amount of the other good due to the resources being not perfectly adaptable for producing both goods. This results in a concave shape to the PPF.