Question

if an economy remains at a point below the production possibility frontier that indicates​

Answer 1

xplanation:

If an economy remains at a point below the production possibility frontier that indicates​ it is over producing one item over the other and in that case, it should lower the production of that item. The demand factor has to be taken into account while producing. This will also lead to unemployment in the sector as when a non selling product is produced, it will not help in circulating the econmoy. Hence it is important to switch to that item which has more demand

Answer 2

If an economy remains at a point below the production possibility frontier that indicates​ productive inefficiency.

• A production potential frontier shows the most significant possible output combinations of two goods or services that an economy can reasonably achieve with complete and efficient use of all necessary resources.
• Points that are purely below the frontier are inefficient because with current resources and technology, the economy can generate more than at least one good without compromising the output of some other good.
• The points lying on the frontier are accurate and are economically feasible.