Question

What is the meaning of the X​-
and Y​-intercepts?
A. These points demonstrate an inefficient use of resources.
B. These are the limits of production if all resources are used to produce both goods.
C. These points show the preferred amount of goods X and Y that a society will produce.
D. These are the limits of production if all resources are used to produce only one good.

Answer 1

Answer:

B. These are the limits of production if all resources are used to produce both goods.

Explanation:

The inerseption of PPF curve on the X & Y axis indicates the maximum quantities which can be produced when all the inpts are devoted to the production of that product only