The production possibilities frontier:
A) shows all possible combinations of goods but does not tell us which combination a society should choose.
B) shows the best combination of goods that a society should choose.
C) cannot show all possible combinations of goods because society is typically inefficient.
D) shows us the possible combinations of goods a society should choose, but cannot tell us which points will be inefficient.

Question

Quizplus · Accepted Answer

The production possibilities frontier shows all possible combinations of goods that a society can produce given its resources and technology. However, it does not tell us which combination a society should choose. The optimal choice depends on a society's preferences and priorities, which cannot be represented on the production possibilities frontier.

The Production Possibilities Frontier