Consider the production possibilities frontier (PPF) shown in the figure below to answer the next three questions.

-Given current resources and technology,the attainable range is best described as:
A) only area O: points outside the PPF.
B) points on the PPF only.
C) only area I: points inside the PPF.
D) area I: points inside the PPF and points on the PPF.
E) Area O: points outside the PPF and points on the PPF.

Question

Consider the production possibilities frontier (PPF) shown in the figure below to answer the next three questions.
 
-Given current resources and technology,the attainable range is best described as:
A) only area O: points outside the PPF. 
B) points on the PPF only. 
C) only area I: points inside the PPF. 
D) area I: points inside the PPF and points on the PPF. 
E) Area O: points outside the PPF and points on the PPF.

Quizplus · Accepted Answer

The attainable range is the combination of outputs that can be produced with current resources and technology, which is represented by area I (inside the PPF) and the PPF itself. Therefore, the best choice is D, which includes both area I and the PPF.

Consider the Production Possibilities Frontier (PPF) Shown in the Figure