A reason the production possibilities frontier exists is
A)unemployment.
B)scarcity of resources and unlimited technology.
C)that people's wants are unlimited.
D)the scarcity of resources.
E)unlimited resources and technology.

Question

Quizplus · Accepted Answer

The production possibilities frontier exists because of the scarcity of resources. This means that there are limited resources available to produce goods and services, and as a result, there are choices that must be made about how to allocate those resources. The production possibilities frontier represents the maximum amount of goods and services that can be produced with the available resources, given technology and current efficiency levels.

A Reason the Production Possibilities Frontier Exists Is