What term is used for points that do not utilize all available resources?

The term that best describes points that do not utilize all available resources is "inefficient points." These points indicate a situation where resources are not being used to their fullest potential, which means that the economy is not operating at its capacity. In a production possibilities frontier (PPF) graph, for example, points that lie inside the curve represent inefficient production because some resources are either underutilized or idle.

Choosing "inefficient points" highlights the concept that there is room for improvement in resource allocation. This is significant in economics as it suggests that more output could be achieved without any additional resources by simply better utilizing what is already available. Efficient points, in contrast, lie on the boundary of the PPF where resources are fully employed, while points beyond the curve are unattainable given current resources and technology. The other terms, while they might relate to concepts of utilization and capacity, do not capture the essence of underutilization inherent in inefficient points as clearly.