A point outside a production possibilities frontier indicates
A) that resources are being used very efficiently.
B) that both goods are characterized by increasing costs.
C) that resources are not being used efficiently.
D) an output combination that society cannot attain given its current level of resources and technology.

Question

Quizplus · Accepted Answer

A point outside the production possibilities frontier shows a combination of goods that cannot be produced with the current level of resources and technology. This means that resources are not enough to produce that combination, and therefore, it is unattainable.

A Point Outside a Production Possibilities Frontier Indicates