Exhibit 2-3 Refer to Exhibit 2-3. If PPF₁ is the relevant production possibilities frontier, society can only choose to produce at a point that lies A)below PPF₁. B)below or on PPF₁. C)on PPF₂. D)above (beyond)PPF₂.

Question

Quizplus · Accepted Answer

A production possibilities frontier shows the maximum combinations of goods and services that can be produced given a fixed set of resources and technology. Any point on or below the frontier is attainable, while any point above the frontier is unattainable with current resources and technology. Therefore, the society can only produce at points that lie on or below the PPF₁, making choice B the correct answer.

Exhibit 2-3 Refer to Exhibit 2-3. If PPF1 Is the Relevant Production

Exhibit 2-3 Refer to Exhibit 2-3. If PPF₁ Is the Relevant Production