16
QuizMultiple Choice

Topic Test

Question 16 • LA-Financial Math A

What does a production possibilities frontier show?

Answer
A
scarce and less scarce resources
B
global trade-offs and costs of doing business
C
an economy that is producing but not at the maximum
D
the maximum amount that an economy can produce

Explanation

A production possibilities frontier shows the maximum combinations of goods and services an economy can produce when it uses its resources and technology efficiently. Points on the frontier represent production at that maximum; points inside it represent underused resources. So the correct choice is “the maximum amount that an economy can produce.”

AI-written and checked against the verified answer.

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