Question

A point outside a production possibilities frontier or curve (PPF) indicates

Answer 1

A point outside a production possibilities frontier or curve (PPF) indicates unattainable combination.

A point outside the production possibilities curve represents a combination of goods that is unattainable. It indicates that there are not enough resources available to produce the combination of goods at the point outside the curve. Any point beyond the production possibility curve is not achievable because the economy does not have the required resources and technology to produce such amount of ouput.