Any output combination outside the production possibilities curve is attainable in the current period only if prices decrease.

Question

Quizplus · Accepted Answer

Any output combination outside the production possibilities curve is attainable only in the long run, through an increase in resources or technological advancement. A decrease in prices may make it more feasible to produce a certain combination of goods, but it does not necessarily make it attainable outside the production possibilities curve.

Any Output Combination Outside the Production Possibilities Curve Is Attainable