Question

The production possibilities frontier illustrates A. the combinations of goods that could be produced with resources and technology constant B. how technology influences opportunity costs C. the law of diminishing returns D. how price changes affect decision making of individuals E. the law of demand

Answer 1

The answer is A. the combinations of goods that could be produced with resources and technology constant

Step-by-step explanation:

In the production possibility frontier, we demonstrate the maximum production capacity a country can achieve given that the resources and the technology remains constant. Production levels outside the curve cannot be achieved by the economy.

When the resources or the technology change, the possibility of production changes along with it.