Final answer:
A production possibilities frontier (PPF) is a diagram that shows the productively efficient combinations of two products that an economy can produce given the resources it has available. Choices outside the PPF are unattainable, and choices inside the PPF are inefficient. The PPF represents the maximum possible production levels with the given resources and technology.
Step-by-step explanation:
A production possibilities frontier (PPF) is a diagram that shows the productively efficient combinations of two products that an economy can produce given the resources it has available. It defines the set of choices society faces for the combinations of goods and services it can produce. The shape of the PPF is typically curved outward, rather than straight.
Choices outside the PPF are unattainable, and choices inside the PPF are inefficient. The PPF represents the maximum possible production levels with the given resources and technology. Any point on the PPF represents an attainable and efficient combination of goods and services.
To simplify, let's say that Saudi Arabia and the United States each have 100 worker hours. A PPF graph can be used to illustrate what each country is capable of producing on its own. The PPF shows the maximum amount that each country can produce given its limited resources, in this case, workers, and its level of technology.