A relationship that shows the technological possibilities for an economy as a whole is called a

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A production possibilities frontier (PPF) is a graph that shows the technological possibilities for an economy as a whole. It shows the maximum combination of two goods that can be produced in a given period with available resources and technology. The PPF illustrates the trade-offs that an economy faces, as producing more of one good means sacrificing the production of another good. Therefore, the PPF demonstrates the potential economic output and the opportunity cost of different production choices. A production function refers to the relationship between factors of production and output of goods and services, while a utility possibilities frontier shows the various combinations of two goods that generate the same level of satisfaction for an individual. A budget constraint represents the combinations of goods and services that a consumer can afford, given his or her income and prices.

A Relationship That Shows the Technological Possibilities for an Economy