A production possibilities frontier demonstrates
A)that there are limits to what a society can produce.
B)the various choices a society can make in allocating its resources.
C)the concept of opportunity cost.
D)it demonstrates all of the choices stated.

Question

Quizplus · Accepted Answer

A production possibilities frontier (PPF) shows the limits to what a society can produce and the various choices a society can make in allocating its resources. It also demonstrates the concept of opportunity cost, which is the cost of choosing one option over another. Therefore, the PPF demonstrates all of the choices stated in the options.

A Production Possibilities Frontier Demonstrates