Asked by Sheana Serena on Jun 01, 2024
Verified
The production possibilities frontier (PPF) depicts the combinations of goods that provides society with the maximum possible benefit.
Production Possibilities Frontier (PPF)
A curve depicting all maximum output possibilities for two goods, given a set of inputs.
Maximum Benefit
The highest level of satisfaction or utility that a consumer can achieve with their available resources.
- Recognize the significance of the production possibilities frontier (PPF) in illustrating economic efficiency and trade-offs.
Verified Answer
ZK
Zybrea KnightJun 02, 2024
Final Answer :
False
Explanation :
The PPF shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized, but it does not indicate which combination provides the maximum benefit to society.
Learning Objectives
- Recognize the significance of the production possibilities frontier (PPF) in illustrating economic efficiency and trade-offs.