What is indicated by a point outside the production possibilities curve?

A point outside the production possibilities curve represents an unattainable level of production given the current resources and technology available in the economy. The production possibilities curve (PPC) illustrates the maximum output combinations of two goods that an economy can achieve when utilizing all its resources efficiently. When a point falls outside this curve, it suggests that the economy does not have sufficient resources or technology to produce that combination of goods.

In contrast, points that lie on the curve indicate efficient use of resources, while points inside the curve point to underutilization of available resources. Therefore, option A accurately reflects the situation of production levels that cannot be achieved under the current constraints of available resources.