During World War II we were our production possibilities cu

During World War II we were _____________ our production possibilities curve.

Solution

During World War II we were _lying outside on____ our production possibilities curve

Production points on a PPF represent efficient use of all of the economy’s resources. The points inside a PPF are possible, however inefficient thus indicate the economy is either not using all of its resources, The points on a PPF represent indiactes efficient usage of all of the resources in the economy. Points outside the PPF are unattainable production points with current technologies and resources