A production possibilities frontier separates an attainable region from an unattainable region.

Question

Quizplus · Accepted Answer

This statement is true. A production possibilities frontier shows the maximum possible combinations of two goods that can be produced with available resources and technology. Any combination of goods that lies on or inside the frontier is attainable, while any combination outside the frontier is unattainable given current resources and technology.

A Production Possibilities Frontier Separates an Attainable Region from an Unattainable