Question

The term "___ ___ Frontier" (or Curve) is a diagram showing the maximum amount of goods and/or services an economy can produce.

Answer 1

Answer:

The term "Production possibility Frontier" (or Curve) is a diagram showing the maximum amount of goods and/or services an economy can produce.

Explanation:

The production possibility curves is a hypothetical representation of the amount of two different goods. This is a curve depicting all maximum output possibilities for two goods. In other words production possibility curve measures the maximum output of two goods using a fixed amount of input.

Answer 2

Answer:

The correct answer is Production Possibility Frontier (PFF).

Explanation:

The term Production Possibility Frontier (PFF) (or Curve) is a diagram showing the maximum amount of goods and/or services an economy can produce.

A curve which depicts all the maximum output possibilities for two goods, with given set of inputs consisting of resources and other factors is called a Production Possibility Frontier.

The Production Possibility Frontier assumes that all inputs are used efficiently, representing the point at which a country's economy efficiently producing its goods and services.