Question

A production possibilities frontier demonstrates ____.

Question options:

economic problems faced by individual units within the overall economy


the ability to produce something more efficiently


the combinations of two goods that can be produced if the economy uses all of its resources fully and efficiently


that if more of a product is initially being produced the opportunity cost to produce more always goes down

Answer 1

A production possibilities frontier demonstrates "the combinations of two goods that can be produced if the economy uses all of its resources fully and efficiently".

A production possibility frontier (PPF) demonstrates the most extreme possible output combinations of two products or administrations an economy can accomplish when all assets are completely and effectively utilized.  

A production possibility frontier is utilized to outline the ideas of opportunity cost, exchange offs and furthermore demonstrate the impacts of monetary development.  

Points within the curve indicate when a nation's assets are not being completely used  

Combinations of the yield of purchaser and capital merchandise lying inside the PPF happen when there are jobless assets or when assets are utilized wastefully.