A production possibilities frontier figure does NOT illustrate A) attainable and unattainable points. B) opportunity cost. C) the exchange of one good or service for another. D) the limits on production imposed by our limited resources and technology.

Question

Quizplus · Accepted Answer

A production possibilities frontier figure shows the combinations of two goods that can be produced with a given level of resources and technology, taking into account the opportunity cost of producing one good over the other. It does not illustrate the exchange of one good or service for another, as this would involve a market transaction outside of the framework of the production possibilities frontier.

A Production Possibilities Frontier Figure Does NOT Illustrate