Which of the following statements regarding the production possibilities frontier is TRUE?
A) Points outside the frontier are attainable.
B) Points inside the frontier are attainable.
C) Points on the frontier are less efficient than points inside the frontier.
D) None of the above because all of the above statements are false.

Question

Quizplus · Accepted Answer

Points inside the production possibilities frontier (PPF) represent combinations of goods and services that an economy can produce using all available resources and technology, but not to their fullest potential, hence they are attainable but not efficient. Points on the frontier represent efficient production levels, and points outside are unattainable with current resources and technology.

Which of the Following Statements Regarding the Production Possibilities Frontier