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A point X inside the production possibility curve indicates that

Economics
WAEC 2019

A point X inside the production possibility curve indicates that

  • A. resources are fully utilized
  • B. the country is poor
  • C. some resources are idle
  • D. resources are not available
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Correct Answer: Option C
Explanation

Point X in the production possibility curve represents an inefficient use of resources, while points A, B, and C on the PPF curve represent the most efficient use of resources by the economy.

 

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