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A-Level Economics · PPF outward shift (economic growth) diagram question

Which point shows an economy with idle resources — unemployed workers and unused capital?

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The diagram

The answer

Point F. Inside the frontier the economy could have more of BOTH goods without giving anything up. That is waste, not scarcity. Any point INSIDE the frontier — F — means resources sitting idle. Moving from F onto the frontier costs nothing but using what you already have: that is actual growth, and it is why this diagram has meaningful points off the curve.

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This is one of 5 questions on the ppf outward shift (economic growth) diagram — every corner lettered, every wrong answer diagnosed.

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