Exhibit 2-3 -Refer to Exhibit 2-3.If PPF₁ 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

Quizplus · Accepted Answer

As per the given exhibit, the relevant production possibilities frontier is PPF₁. This frontier represents the maximum combination of goods that can be produced with the given resources and technology. Any point below or on the production possibility frontier represents the efficient utilization of resources. However, any point above the frontier is currently unattainable with the given resources and technology. Therefore, society can choose points that lie only below or on PPF₁. Option B correctly suggests that society can choose points that lie below or on the production possibility frontier.

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF1 Is the Relevant Production Possibilities

Exhibit 2-3 -Refer to Exhibit 2-3.If PPF₁ Is the Relevant Production Possibilities