The production possibilities frontier is a graph showing the
A)minimum combinations of goods and services that can be produced.
B)maximum combinations of goods and services that can be produced.
C)tradeoff between free lunches.
D)exact point of greatest efficiency for producing goods and services.
E)resources available for the economy's production use.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is a graph that shows the maximum combinations of goods and services that an economy can produce given its resources and technology. It represents the tradeoff between producing one good over another and shows all the possible combinations of the two goods that can be produced at maximum efficiency. Therefore, the option that best describes the PPF is B.

The Production Possibilities Frontier Is a Graph Showing the