Question

A production possibilities frontier represents the different choices or trade-offs a society faces. True. False..

Answer 1

The correct answer is True.

It is true that a production possibilities frontier represents the different choices or trade-offs a society faces.

In an economy, a production possibilities frontier or PPF is a transformation curve where economist can identify the máximum number of possibilities of two goods when resources are fixed. This serves a Company that has limited resources to make a decision on two things. The graphic shows a curve; one good in the “x” axis and the other one is in the “y” axis.  

Answer 2

The production possibilities frontier also called the production possibilities curve represents the different choices or trade-offs that a society faces given a finite number of resources. This is True.