The production possibility frontier is a graph that shows
A) all the combinations of goods and services that are consumed over time if all of society's resources are used efficiently.
B) the amount of goods and services consumed at various average price levels.
C) the rate at which an economy's output will grow over time if all resources are used efficiently.
D) all the combinations of goods and services that can be produced if all of society's resources are used efficiently.

Question

Quizplus · Accepted Answer

The production possibility frontier (PPF) illustrates all the possible combinations of two goods or services that an economy can produce when all its resources are utilized efficiently.

The Production Possibility Frontier Is a Graph That Shows