Two reasons why an economy might operate inside of its production possibilities frontier are
a. productive efficiency and technological change
b. depressions and inflation
c. recessions and productive inefficiency
d. opportunity costs and substitutability of resources used in production

A production possibility frontier shows the maximum possible combinations of two goods that an economy can produce using all the available resources. The points below the production possibility frontier show inefficient bundles. The points on the curve show the efficient utilization of resources. The points above the curve show unattainable bundles.

An economy may operate below its production possibility curve because of recessions and inefficiency in production. During recessions or because of productive inefficiency all the available resources are not efficiently utilized.

Two reasons why an economy might operate inside of its production possibilities frontier are a. productive efficiency and technological change b. depressions and inflation c. recessions and productive inefficiency d. opportunity costs and substitutability of resources used in production

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Two reasons why an economy might operate inside of its production possibilities frontier are
a. productive efficiency and technological change
b. depressions and inflation
c. recessions and productive inefficiency
d. opportunity costs and substitutability of resources used in production