An economy's production possibilities frontier is also its consumption possibilities frontier
A)under all circumstances.
B)under no circumstances.
C)when the economy is self-sufficient.
D)when the rate of tradeoff between the two goods being produced is constant.

Question

Quizplus · Accepted Answer

When an economy is self-sufficient, it does not engage in trade, so its production possibilities frontier (PPF) is also its consumption possibilities frontier, as it can only consume what it produces.

An Economy's Production Possibilities Frontier Is Also Its Consumption Possibilities