The economic model that depicts the maximum output that can be produced in an economy when resources are used efficiently is known as the:
A) circular flow model.
B) production possibilities frontier model.
C) opportunity cost model.
D) law of increasing costs.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) model shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are used efficiently, highlighting the trade-offs and opportunity costs associated with allocating resources between different goods and services.

The Economic Model That Depicts the Maximum Output That Can