Points that lie within the production possibility frontier are described as what?

Points that lie within the production possibility frontier are characterized as inefficient. This indicates that the economy is not utilizing all of its available resources to their full potential. When production occurs inside the frontier, it suggests that either some resources are underutilized or that there is idle capacity, which means that the economy could produce more goods and services without needing additional resources.

In contrast, points on the frontier represent efficient production levels, where all resources are fully employed. Points outside the frontier indicate unattainable production levels given current resources and technology, while points within the frontier show that there is room for improvement in efficiency. Thus, recognizing points within the production possibility frontier as inefficient helps in understanding how an economy can strive for better resource utilization and improved production outputs.