Exhibit 2-3

-Refer to Exhibit 2-3.If PPF? is the relevant production possibilities frontier,society can choose points that lie only
A) below PPF1.
B) below or on PPF1.
C) on PPF2.
D) none of the above

Question

Exhibit 2-3
 
-Refer to Exhibit 2-3.If PPF? is the relevant production possibilities frontier,society can choose points that lie only
A) below PPF1. 
B) below or on PPF1. 
C) on PPF2. 
D) none of the above

Quizplus · Accepted Answer

The PPF shows the combination of goods that can be produced with the given resources, technology, and efficiency. Any point below or on the PPF is feasible and can be produced. Therefore, society can choose points that lie below or on PPF1. Choosing points above PPF1 is not feasible with the given resources and technology, and choosing points on PPF2 would require an increase in resources or technological improvement.

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF? Is the Relevant Production Possibilities