An economy can produce at any point on or inside its production possibilities frontier, but it cannot produce at points outside its production possibilities frontier.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) represents the maximum combination of goods or services that can be produced with a given set of resources and technology. Points on or inside the PPF are attainable, while points outside the PPF are not achievable with the current resources and technology.

An Economy Can Produce at Any Point on or Inside