Question

If a certain combination of goods and services lies inside the production possibilities curve for an economy, which of these statements must be true? A) That combination is an inefficient use of resources. B) Resources are being used more efficiently now than in the past. C) This economy must be realizing gains from specialization and trade. D) More resources must be obtained to attain that combination of goods and services.

Answer 1

The amount of one good or time that can be sacrificed to get an alternative good is called the opportunity cost and it is used to avail more resources to get the perfect combination of goods and services.

The economic efficiency along the ppf can be found when points along the curve are at maximum efficiency. This might include production of a specialized good also.  

Answer 2

If a certain combination of goods and services lies inside the production possibilities curve for an economy, the answer is A) That combination is an inefficient use of resources.