The production possibilities frontier itself illustrates
A) all goods that can be produced by an economy.
B) the combination of goods and services that can be produced efficiently.
C) all goods and services that are desired but cannot be produced due to scarce resources.
D) all possible production of capital goods.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the combination of goods and services that can be produced efficiently given available resources and technology. It shows the trade-offs in production volume between two choices.

The Production Possibilities Frontier Itself Illustrates