A point outside a production possibilities frontier indicates
A) that resources are not being used efficiently.
B) an output combination that society cannot attain given its current level of resources and technology.
C) that resources are being used very efficiently.
D) that both goods are characterized by increasing costs.

Question

Quizplus · Accepted Answer

A point outside a production possibilities frontier (PPF) represents a level of output that is currently unattainable with the existing resources and technology. It does not imply inefficiency or the nature of costs, but rather that the economy cannot produce at that point given its current capabilities.

A Point Outside a Production Possibilities Frontier Indicates