The production possibilities frontier is a graph showing the
A) exact point of greatest efficiency for producing goods and services.
B) tradeoff between free lunches.
C) maximum combinations of goods and services that can be produced.
D) minimum combinations of goods and services that can be produced.
E) resources available for the economy's production use.

Question

Quizplus · Accepted Answer

The production possibilities frontier shows the maximum combinations of goods and services that can be produced with given resources and technology. It illustrates the tradeoff between producing one good versus another, and any point on the frontier represents an efficient use of resources. Therefore, choice C is the correct answer.

The Production Possibilities Frontier Is a Graph Showing the