Question

The production-possibility frontier shows the ______ of production that can be obtained by an economy, given ______.

• A. minimum amount; technology and inputs to production
• B. mininium amount; efficiency
• C. maximum amount; a command economy
• D. maximum amount; technology and inputs to production

Answer 1

Answer: (A)

minimum amount; technology and inputs to production

The production possibility frontier shows the minimum amounts of production that can be obtained by an economy, given technology and inputs to production. It shows the graphical representation of two goods that can be produced with given resources and technology.