Question

Current possibilities

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Answer 1

$\huge \pink \dag \mathbb \color{cyan}A \color{pink}N \color{orange}S \color{blue}W \color{green}E \color{gray}R \color{purple} \leadsto$

Economists conclude that it is better to be on the production possibilities curve than inside it. Two things could leave an economy operating at a point inside its production possibilities curve. First, the economy might fail to use fully the resources available to it. Second, it might not allocate resources on the basis of comparative advantage.