The production possibilities frontier itself shows
A) the maximum amount of resources available at any given time.
B) combinations of goods and services that do not fully use available resources.
C) the maximum rate of growth of output possible for an economy.
D) the maximum levels of production that can be attained.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the maximum levels of production that an economy can achieve when using its resources fully and efficiently. It represents the combinations of two goods or services that can be produced while fully utilizing the available resources, such as labor, capital, and technology, under the given state of technology.

The Production Possibilities Frontier Itself Shows