Which of the following is NOT true concerning a society's production possibilities frontier (PPF)?
A) It reveals the maximum amount of any two goods that can be produced from a given quantity of resources.
B) Tradeoffs occur when moving along a PPF.
C) Consumers will receive equal benefits from the two goods illustrated in the PPF.
D) Production efficiency occurs when production is on the frontier itself.

Question

Quizplus · Accepted Answer

The PPF does not necessarily imply that consumers will receive equal benefits from the two goods illustrated in the PPF. The PPF simply illustrates the tradeoff between the production of two goods given a fixed set of resources. The benefits received by consumers will depend on individual preferences and the market equilibrium.

Which of the Following Is NOT True Concerning a Society's