The ________ illustrates the various combinations of output that a society can produce if all of its resources are being used efficiently.
A) concept of absolute advantage
B) law of positive statements
C) law of demand
D) production possibilities frontier (PPF)
E) principle of comparative advantage

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the different possible combinations of two goods that a society can produce with its limited resources and technology, assuming that these resources are being used efficiently. It shows the trade-offs that must be made between the production of one good and the production of another. Therefore, option D is the correct answer. The other options are not related to the concept of PPF.

The ________ Illustrates the Various Combinations of Output That a Society