Question

The production possibilities frontier illustrates Group of answer choices a. the trade-off between efficiency and equality. b. the combination of output that an economy should produce. c. the combination of output that each member of society should consume. d. None of the above is correct.

Answer 1

Answer:

Option (b) is correct.

Explanation:

The production possibility frontier refers to the graphical representation of various combination of output that an economy can produce with available or limited factors of production or resources.

Alternatively, it tells us about the combination of two goods that a firm can produce with the fixed amount of resources as both the goods are important for their manufacture.