Does the following statement describe a budget constraint or a production possibilities frontier? Select the best answer. This graph represénts the constraints under which society as a whole operates. Production possibilities frontier Budget constraint Answer 2 Points

Question

Does the following statement describe a budget constraint or a production possibilities frontier? Select the best answer. This graph represénts the constraints under which society as a whole operates. Production possibilities frontier Budget constraint Answer 2 Points

Answer 1

The correct answer is:**Production possibilities frontier**### Explanation:A **production possibilities frontier (PPF)** represents the constraints under which society as a whole operates. It shows the maximum possible combinations of two goods or services that can be produced with available resources and technology, illustrating trade-offs and opportunity costs.On the other hand, a **budget constraint** applies to individuals or households and represents the trade-offs they face when allocating their limited income among different goods and services.

Problemas

Does the following statement describe a budget constraint or a production possibilities frontier? Select the best answer. This graph represénts the constraints under which society as a whole operates. Production possibilities frontier Budget constraint Answer 2 Points

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