Consider the production possibilities frontier displayed in the figure shown. A society with this frontier should choose to produce:

Question

Quizplus · Accepted Answer

Any point on the frontier represents the most efficient use of resources and allows a society to produce the maximum amount of goods possible given its resources and technology. Points inside the frontier represent inefficient use of resources and result in less production than is possible. Therefore, a society should always produce at a point on the frontier, rather than inside it.

Consider the Production Possibilities Frontier Displayed in the Figure Shown