Day: June 10, 2022

An economy is operating at a point inside its production possibility curve.

Why is this described as inefficient?

Select ONE answer:

1. Individuals are enjoying too much leisure.
2. Labour and capital are combined in the wrong proportions.
3. More of one good can be produced without decreasing production of another.
4. There are shortages of some goods and an excess supply of others.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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