The production possibility function can illustrate one of the following
A. the principle of opportunity cosi and increasing opportunity costs. B. the distinction between micro and macrocconomics. C. efficient, infeasible and inefficient production combinations. D. all of the above.
Correct Answer: D
Explanation
the PPF/PPB/PPC shows two combination of products that can be produced using all the resources available. Any point above the PPC indicates impossibility. This can be achieved by increase/discovery of new resources etc. any point below the curve indicates inefficiency.
