The Production Possibilities Frontier

question 42

Multiple Choice

The production possibilities frontier

• A) shows how many goods and services are consumed by each person in a country.
• B) is a model that assumes there is no scarcity and no opportunity cost.
• C) is a graph with price on the vertical axis and income on the horizontal axis.
• D) depicts the boundary between those combinations of goods and services that can be produced and those that cannot, given resources and the current state of technology.

---

Definitions:

Sales Account

A record or agreement defining the relationship and transactions between a buyer and a seller, often including terms of sale, credit limits, and purchase history.