Question

The physical production possibilities frontier depicts the various combinations of output that society can produce given:_____.

a. its institutional constraints.
b. the natural rate of unemployment.
c. the constraints of finite resources and the current state of technology.
d. the constraints of finite resources and the current state of technology and institutional constraints.

Answer 1

The correct answer is the option C: the constraints of finite resources and the current state of technology.

Step-by-step explanation:

To begin with, the production-possibility frontier is a concept known in the area of economy that refers to a curve whose main purpose is to show various combinations of output betweem two goods that the society can produce given finite resources and the current state of technology. Therefore that it comprehends the graphical representation of all that possible combinations between those two goods where the finite resources and the current state of technology are the two most important factors to take in mind.