Home /
Expert Answers /
Economics /
macroeconomic-problems-are-observed-i-on-points-along-the-production-possibilities-frontier-pa416
(Solved): Macroeconomic problems are observed... i. On points along the production possibilities frontier ...
Macroeconomic problems are observed... i. On points along the production possibilities frontier ii. On points beyond the production possibilities frontier iii. On points within the production possibilities frontier A. ii and iii B. i only C. i and ii D. ii only
Expert Answer
The correct answer is (C). Macroeconomic problems are observed on points along the production possibilities frontier and on points beyond the production possibilities frontier. A production possibilities frontier (PPF) is a curve that shows the maximum combination of goods and services that can be produced in an economy given the available resources and technology. Points along the PPF represent efficient production, while points beyond the PPF represent unattainable production.