In autarky,when a community maximizes its standard of living,its consumption point is
A)below the production possibility frontier.
B)on the production possibility frontier.
C)above the production possibility frontier.
D)can't tell without more information.

Question

Quizplus · Accepted Answer

In autarky, the production possibility frontier represents the maximum amount of goods and services a community can produce, given its resources and technology. When a community maximizes its standard of living, it would consume the combination of goods and services on the production possibility frontier that provides the highest utility. Therefore, the consumption point is on the production possibility frontier.

In Autarky,when a Community Maximizes Its Standard of Living,its Consumption