When an economy is operating inside its production possibilities frontier, we know that

1.There are unused resources or inefficiencies in the economy

2.All of the economy's resources are fully employed

3.Economic growth would have to occur in order for the economy to move to a point on the frontier

4.In order to produce more of one good, the economy would have to give up some of the other good.

For unlimited access to Homework Help, a Homework+ subscription is required.

Sonal Bahl
Sonal BahlLv10
29 Sep 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related textbook solutions

Weekly leaderboard

Start filling in the gaps now
Log in