Inefficient Use of Resources Is Shown on the Production Possibilities

question 87

Multiple Choice

Inefficient use of resources is shown on the production possibilities curve

• A) by an inward shifting of the curve.
• B) by a point inside the curve.
• C) by a point near the top of the curve.
• D) by a point outside the curve.

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Definitions:

Consuming

Consuming involves using up goods or services by purchasing, eating, or utilizing them to satisfy needs or wants.

Good

A material item or service that satisfies a need or desire and is available for purchase or trade.

Demand-Side

Economic policies or concepts focused on increasing demand for goods and services as a way to stimulate economic growth.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.