-Refer to Exhibit 2-4.The line joining points A and D is called the
A) production function frontier.
B) utility function.
C) production possibilities frontier.
D) demand curve.

Question

-Refer to Exhibit 2-4.The line joining points A and D is called the
A) production function frontier. 
B) utility function. 
C) production possibilities frontier. 
D) demand curve.

Quizplus · Accepted Answer

The line joining points A and D represents the production possibilities frontier (PPF), which shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized, given a fixed level of technology.