A typical economy produces thousands of different goods.Is it accurate to say that society faces a production possibilities frontier?

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the trade-offs that exist in an economy due to scarcity. As scarcity forces producers to make choices between different goods and services, opportunity costs arise, and society faces a production possibilities frontier. Even though thousands of different goods are produced in an economy, the concept of a production possibilities frontier still applies as resources are limited and choices must be made. Therefore, answer choice D is the most accurate.

A Typical Economy Produces Thousands of Different Goods