The production possibilities frontier is a boundary that separates
A) the combinations of goods that can be produced from the combinations of services.
B) attainable combinations of goods and services that can be produced from unattainable ones.
C) equitable combinations of goods and services that can be produced from inequitable ones.
D) fair combinations of goods and services that can be consumed from unfair ones.
E) affordable production points from unaffordable points.

Question

Quizplus · Accepted Answer

The production possibilities frontier separates attainable combinations of goods and services that can be produced from unattainable ones. It represents the maximum amount of output that can be produced given the available resources and technology, and any point on the frontier is efficient while any point inside the frontier is inefficient.

The Production Possibilities Frontier Is a Boundary That Separates