When an economy's resources are not fully employed, then it must be true that the:
a. production point is located along the production possibilities curve.
Answered duction point is located inside and to the left of the production possibilities curve.
O c. production possibilities curve shifts to the left.
O d. production point is located outside and to the right of the production possibilities curve.



Answer :

Final answer:

When an economy operates inside its production possibilities curve, it signifies resource underutilization and potential for improvement.


Explanation:

When an economy's resources are not fully employed and it operates inside its production possibilities curve, it indicates underutilization of resources and a potential for improvement in performance. Allocating resources based on comparative advantage and utilizing available resources optimally are crucial for maximizing production efficiency.


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