If an economy is operating at a point inside the production possibilities curve,
a. opportunity costs are decreasing as more of one good is traded for the other good.
Ob. there is full employment of all resources.
Oc. its resources are not being used efficiently.
O d. technology has improved.



Answer :

Final answer:

An economy operating inside its production possibilities curve is inefficient and can improve by maximizing resource utilization and operating at full efficiency.


Explanation:

An economy operating inside its production possibilities curve indicates inefficiency due to factors not being fully utilized or allocated based on comparative advantage. strong> p> This situation implies potential for improvement as the economy could produce more goods and services valued by people and enhance the standard of living by maximizing resource usage. p>

Operational efficiency and full resource utilization are key to being on the production possibilities curve. p>
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