During the Great Depression of 1929, manufacturing jobs, such as the jewelry and the steel industries, were hit very hard in the U. S. because the stock market crashed and because people were not spending
their money on jewelry and steel. So the jewelry and steel companies in the U. S. were producing less
jewelry and steel than what they were supposed to be producing. Based on this scenario, the jewelry
companies in the U. S. was operating:
beyond its production possibilities frontier (PPF).
inside (below) its PPF curve.
on its PPF curve.