What does the production possibilities frontier imply about the resource allocation?
A)Only some points on the curve are efficient.
B)All points on the curve are equally efficient.
C)A point that lies below the curve is more efficient.
D)A point that lies above the curve is readily achievable.

Question

Quizplus · Accepted Answer

All points on the production possibilities frontier (PPF) represent efficient allocation of resources, where the economy is producing at its maximum potential given the available resources and technology. Points below the curve indicate underutilization of resources, while points above the curve are unattainable with the current resources and technology.

What Does the Production Possibilities Frontier Imply About the Resource