The production possibilities frontier is a graph that shows the various combinations of output that an economy
A)should produce.
B)wants to produce.
C)can produce.
D)demands.

Question

Quizplus · Accepted Answer

The production possibilities frontier shows the combinations of output that an economy can produce given its resources and technology. It represents the maximum amount of one good that can be produced for every possible level of production of the other good. Therefore, option C is the correct answer as it reflects the basic concept of the production possibilities frontier. Options A, B, and D are incorrect as they do not reflect the purpose of the production possibilities frontier.

The Production Possibilities Frontier Is a Graph That Shows the Various