A point on a country's production possibilities frontier indicates:
A) a level of production that would cause unemployment.
B) a level of production that is unattainable.
C) an undesirable level of production.
D) a level of production where resources are fully employed.
E) All of the above

Question

Quizplus · Accepted Answer

A point on a country's production possibilities frontier (PPF) represents a situation where all resources are being used efficiently, meaning there is full employment of resources. The PPF shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.

A Point on a Country's Production Possibilities Frontier Indicates