Any output combination along a production possibility frontier is associated with fully utilized resources.

Question

Quizplus · Accepted Answer

The production possibility frontier represents the maximum combination of goods and services that can be produced with the given resources and technology. Any output combination on the PPF implies that all available resources are fully utilized. If the output is below the PPF, it indicates that resources are not being fully utilized, and if the output is beyond the PPF, it indicates that it is not attainable with the given resources and technology.

Any Output Combination Along a Production Possibility Frontier Is Associated