The production possibilities frontier illustrates that it is not possible for an economy to produce an output that is outside the frontier.

Question

Quizplus · Accepted Answer

The production possibilities frontier shows the maximum combinations of two goods that an economy can produce using its resources and technology. Any point outside the frontier is not attainable given the current resources and technology. Therefore, it is true that an economy cannot produce an output that is outside the frontier.

The Production Possibilities Frontier Illustrates That It Is Not Possible