Question

The production possibilities frontier is a graph that shows the various combinations of output that an economy

a.
should produce.
b.
can produce.
c.
demands.
d.
wants to produce.

Answer 1

A production possibilities frontier is a graph that shows the various combinations of output that an economy can produce.

Step-by-step explanation:

A production possibilities frontier (PPF) is a graph that shows the various combinations of output that an economy can produce. It represents the maximum level of production that can be achieved with the available resources and technology. The shape of the PPF is typically curved outward, reflecting the concept of increasing opportunity cost.

Choices inside the PPF are considered attainable but inefficient, while choices outside the PPF are unattainable. Over time, a growing economy tends to shift the PPF outwards as it acquires more resources or improves technology.