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

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates attainable and unattainable points, the limits on production due to resources and technology, and the concept of opportunity cost. It does not directly illustrate the exchange of one good or service for another, which is more related to market transactions rather than the production capabilities of an economy.

A Production Possibilities Frontier Does NOT Illustrate