Any point inside a production possibilities frontier (PPF) is:

• A. Unattainable with current resources
• B. On the frontier
• C. Productively efficient
• D. Productively inefficient

Answer: (D)

Verified step by step guidance

1. Understand what a Production Possibilities Frontier (PPF) represents: it shows the maximum possible output combinations of two goods that an economy can produce using all available resources efficiently.
2. Recall that points on the PPF curve represent productively efficient production levels, where resources are fully utilized without waste.
3. Recognize that points outside the PPF are unattainable with current resources because they require more inputs than available.
4. Identify that points inside the PPF indicate that some resources are not being fully utilized, meaning production is below potential and thus productively inefficient.
5. Conclude that any point inside the PPF is productively inefficient because the economy could increase output of one or both goods without sacrificing production of the other.