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A-Level Economics · Production possibility frontier diagram question

Which point shows an economy with UNEMPLOYED resources (productive inefficiency)?

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The diagram

The answer

Point C. Inside the curve: the economy could have more of BOTH goods — resources are idle. Any point INSIDE the frontier (like C) means idle resources — more of both goods is available for free. (This is the one diagram where meaningful points sit off the lines: inside and outside ARE the lesson.)

Test yourself properly

This is one of 3 questions on the production possibility frontier diagram — every corner lettered, every wrong answer diagnosed.

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