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If a Nation Is Operating at a Point Inside the Production

Question 229

Multiple Choice

If a nation is operating at a point inside the production possibilities curve, it indicates that the nation could


A) increase its production of both goods X and Y simultaneously.
B) increase its production of one good, but only at the expense of reducing the other good.
C) not produce any more of one of the goods X or Y.
D) not employ any more resources, because all resources are now employed.

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