Where can an economy not produce?
A)inside its production possibilities frontier
B)on its production possibilities frontier
C)outside its production possibilities frontier
D)at the endpoints of its production possibilities frontier

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum potential output that an economy can produce given its resources and technology. Therefore, anything outside of the production possibilities frontier is unattainable without either improving the technology or increasing the available resources. Thus, an economy cannot produce beyond its production possibilities frontier.

Where Can an Economy Not Produce