Any Point NOT on the Production Possibilities Curve Cannot Be

question 16

Multiple Choice

Any point NOT on the production possibilities curve cannot be optimal. What reasoning supports this?

• A) Operating inside the curve means sacrificing economic growth for current consumption, and economic growth is always a goal worth pursuing.
• B) Operating inside the curve leads to inflation and inflation can be very costly.
• C) Operating inside the curve is inefficient and represents wasted resources.
• D) A point inside the curve implies that society is not facing up to the problem of scarcity.