Output combinations outside the production possibilities curve are attainable in the current period only if prices decrease.

Question

Quizplus · Accepted Answer

Output combinations outside the production possibilities curve are not attainable in the current period regardless of price changes. They represent combinations that are currently unattainable due to limited resources and technology. Prices may affect the production possibilities curve, but they do not change the fact that certain combinations are currently impossible to produce.

Output Combinations Outside the Production Possibilities Curve Are Attainable in the Current