The production possibility frontier shows: the combinations of output that an economy can produce given its productivity and supply of inputs. the types of goods and services that society should produce to satisfy social interest. how society can produce more of one good without giving up the production of another good what people can consume given different combinations of goods produced.

the combinations of output that an economy can produce given its productivity and supply of inputs.

Explanation:

The production possibilities frontier (PPF) basically shows the different combination of output of two goods that an economy can produce using its available factors of production (land, labor, capital and technology).

The PPF helps to illustrate the concepts of opportunity costs and comparative advantages in trade.

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