Which of the following is a correct statement about production possibilities frontiers?
A)An economy can produce only on the production possibilities frontier.
B)An economy can produce at any point inside or outside a production possibilities frontier.
C)An economy can produce at any point on or inside the production possibilities frontier,but not outside the frontier.
D)An economy can produce at any point inside the production possibilities frontier,but not on or outside the frontier.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum combinations of goods and services an economy can produce with the given resources and technology. Any point on or inside the frontier is attainable given the current resources and technology. However, any point outside the frontier is unattainable with the given resources and technology. Therefore, option C is the correct statement.

Which of the Following Is a Correct Statement About Production