The production possibilities frontier is the boundary between A. those resources that are limited and those that are unlimited.
B. those wants that are limited and those that are unlimited. C. those combinations of goods and services that can be produced and those that cannot. D. those combinations of goods and services that can be produced and those that can be consumed.
1 answer:
Answer:
C. those combinations of goods and services that can be produced and those that cannot
Explanation:
The production possibility frontier is a curve that shows the two combinations of goods an economy can produce given that its resocurces are fully employed.
Production that takes place inside the curve indicates that resources are underutilized.
Production cannot take place outside the curve.
In the attached image, points a,b,c amd d represents production that takes place when resocurces are fully employed.
Point e indicates that resources are underutilized.
Point f is not achievable given the country's resources.
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