A Production Possibilities Frontier Shows

question 55

Multiple Choice

A production possibilities frontier shows

• A) the various combinations of output a nation can produce a certain time, given its available resources and technology.
• B) the limits to future growth of a nation.
• C) how money can be allocated among two kinds of goods.
• D) that if price of one good decreases, the price of the other has to increase.
• E) that it is impossible to produce inefficiently.

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