The ______ shows all combinations of goods that a country can produce given its productivity and ______.
A) comparative advantage frontier; market prices
B) absolute advantage frontier; supply of inputs
C) production possibilities frontier; supply of inputs
D) production possibilities frontier; market prices

Question

Quizplus · Accepted Answer

The production possibilities frontier shows all combinations of goods that a country can produce given its productivity and supply of inputs. It does not take into account market prices or comparative advantage. The absolute advantage frontier is not a commonly used term in economics.

The ______ Shows All Combinations of Goods That a Country