Economy: Production possibilities frontier Multiple answer can be chosen Which o

Question

Economy: Production possibilities frontier

Multiple answer can be chosen

Which of the following are true for the points along the production possibilities frontier (PPF)? The PPF demonstrates the maximum that can be produced with a given set of resources. The PPF demonstrates the maximum that can be consumed with a given set of resources and no outside trade. The PPF demonstrates the maximum consumption possibilities when trade is allowed. The PPF demonstrates the production possibilities given various resource levels.

Explanation / Answer

since The PPF graph shows how resources must be shared among goods during the production process.A PPF graph shows the maximum production level for one commodity for any production level of the other commodity.therefore.
true statesments are :-

the PPF demonstrates the maximum that can be produced with a given set of resources.

the PPF demonstrates the maximum that can be consumed with a given set of resources and no outside trade.

the PPF demonstrates the production possibilities given various resource levels.

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