A Graph That Shows the Maximum Attainable Combinations of Two

question 62

Multiple Choice

A graph that shows the maximum attainable combinations of two goods when society efficiently uses its productive resources is called

• A) a production possibilities frontier (PPF).
• B) a supply curve.
• C) opportunity cost.
• D) a consumer demand curve.
• E) absolute advantage.

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Definitions:

Peanut Butter

A food paste or spread made from ground, dry-roasted peanuts.

Consumer Income

The total amount of money earned by an individual or household that affects their buying habits and purchasing power.

Complements

Goods or services that are used together, where the use of one increases the value or demand for the other, like smartphones and data plans.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer preferences or needs.