The production possibilities frontier shows
A)the effect of advancing technology on production possibilities.
B)the maximum possible growth rate of output in an economy.
C)combinations of goods and services that do not fully use available resources.
D)the maximum quantity of resources available at any given time.
E)the maximum level of production that can be attained.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum level of production that an economy can attain given its resources and technology. It shows the combinations of two goods that can be produced with those resources and technology at their fullest extent, given that all resources are being used efficiently.

The Production Possibilities Frontier Shows