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

The correct answer is:<br /><br />**Production possibilities frontier**<br /><br />### Explanation:<br />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.<br /><br />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.