Where can an economy not produce?A) Inside its production possibilities frontierB) On its production possibilities frontierC) Outside its production possibilities frontierD) At the endpoints of its production possibilities frontier

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Lisette Ortega-Oropesa · Accepted Answer

Final Answer : C, Explanation :  An economy cannot produce outside its production possibilities frontier because the frontier represents the maximum output combinations of goods and services that can be produced given available resources and technology. Producing outside the frontier would require more resources or technology than currently available.

Where can an economy not produce?

A) Inside its production possibilities frontier
B) On its production possibilities frontier
C) Outside its production possibilities frontier
D) At the endpoints of its production possibilities frontier

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