A nation can produce at a point outside its PPF
A) when it trades with other nations.
B) when it produces inefficiently.
C) when its PPF is bowed out.
D) never.

Question

Quizplus · Accepted Answer

A nation cannot produce outside its Production Possibility Frontier (PPF) as the PPF represents the maximum combination of goods or services that can be produced with existing resources and technology. Producing outside the PPF would require more resources or technology than currently available.

A Nation Can Produce at a Point Outside Its PPF