The production possibility frontier shows:

Question

Quizplus · Accepted Answer

The production possibility frontier shows the different combinations of output that an economy can produce given its productivity and supply of inputs. It represents the maximum amount of two goods that can be produced with the given resources, technology, and efficiency. It demonstrates the trade-offs between producing one good versus another and helps to make decisions on resource allocation. The other options are incorrect because the production possibility frontier does not reveal how to produce more of one good without giving up the production of another good (A), what people can consume given different combinations of goods produced (B), or the types of goods and services that society should produce to satisfy social interest (D).

The Production Possibility Frontier Shows