If an Economy Is Operating Inside Its Production Possibilities Curve

Multiple Choice

If an economy is operating inside its production possibilities curve for consumer goods and capital goods, this means that it:

A) can only produce more consumer goods by producing fewer capital goods.
B) can only produce more capital goods by producing fewer consumer goods.
C) can produce more of both consumer goods and capital goods by using its resources more efficiently.
D) must improve its technology to produce more output.