In a production possibilities frontier diagram,the attainable production points are shown as
A)only the points inside the production possibilities frontier.
B)the points inside and the points on the production possibilities frontier.
C)only the points on the production possibilities frontier.
D)only the points beyond the production possibilities frontier.
E)any of the production points.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum output that an economy can produce with a given amount of resources and technology. Any point on the PPF represents an attainable combination of two goods that can be produced with the given resources and technology. However, any point inside the PPF represents an underutilization of resources, and any point outside the PPF is unattainable with the given resources and technology. Therefore, the attainable production points are the points inside and on the PPF. Option B is the correct answer.

In a Production Possibilities Frontier Diagram,the Attainable Production Points Are