What is production possibility frontier?

Combination of two or ore resources used in production

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Combination of a good and a service when the resources are fully utilized

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Combination of a good and a resource when the resources are fully utilized

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Combination of two goods that can be produced when the resources are fully utilized

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Solution

The correct option is C Combination of two goods that can be produced when the resources are fully utilized
A production possibility frontier/Curve (PPF/PPC) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed

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Similar questions

Which of the following is an assumption of Production Possibility Frontier?
(i) Resources are not fully employed.
(ii) Resources are not equally efficient for production of the two goods.
(iii) Resources are not efficiently employed.
(iv) Resources available are not fixed.

Which of the following is an assumption of Production Possibility Frontier?

i) Resources are not fully employed.

ii) Resources are not equally efficient for production of the two goods.

iii) Resources are not efficiently employed.

iv) Resources available are not fixed.

Q. Productive Resources required to produce goods and/or services are called _________________.

Q. Why marginal opportunity cost must rise as resources are shifted from Use-

1

to Use-

2

, even when given resources are fully and efficiently utilised?

Q. Resources used by businesses to produce goods and services whether durable or non-durable are known as _______.

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