What does a point on a country's production possibilities frontier represent?
A) a combination of two goods that an economy will never be able to produce
B) a combination of two goods that an economy can produce using all available resources and technology
C) a combination of two goods that an economy can produce using some of its resources and technology
D) a combination of two goods that an economy may be able to produce sometime in the future with additional resources and technology

Question

Quizplus · Accepted Answer

A point on a country's production possibilities frontier represents a combination of two goods that an economy can produce using all available resources and technology. This means that the economy is operating at maximum efficiency and is achieving the highest possible level of output for those two goods. Any point inside the production possibilities frontier indicates that the economy is not using all available resources and technology, while any point outside the frontier is currently unattainable with the current resources and technology.

What Does a Point on a Country's Production Possibilities Frontier