If a country is operating at a point inside its production possibilities frontier, it

The answer is - It has unemployed resources

Explanation:

The production possibility frontier (PPF) is also known as the production possibility curve. It is a curve which illustrates the maximum output combination of two separate goods or services when there is fixed availability of resources which both of the goods or services require for their production. The curve measures maximum output of the two separate goods or services using a fixed amount of any combination of the four factors of production. The four factors of production include; Land (natural resources), capital, labor and entrepreneurship.

When an economy or a country operates at the frontier it has the highest standard of living that it can achieve due to the fact that it is producing efficiently using the same resources. However, if the country or economy is operating inside the frontier or curve, it means that all of the resources are not being used.

b) to encourage free trade