Question

The collection of all possible combinations of the goods and services that can be produced from a given amount of resources and a given stock of technological knowledge is called?

• A. Production Possibility Frontier
• B. Isoquant Curve
• C. Production Possibility Set
• D. Isocost Line

Hint:

Remember: The set = all combinations (efficient + inefficient). The frontier = only efficient combinations.

Answer 1

The Correct Option is C

Step 1: Recall the concepts.
- Production Possibility Frontier (PPF): The boundary curve showing the maximum output combinations achievable.
- Isoquant Curve: Represents different input combinations producing the same output.
- Isocost Line: Represents combinations of inputs purchasable for a given cost.
- Production Possibility Set: Represents all possible combinations of goods and services that can be produced with given resources and technology. The PPF is only the boundary of this set.
Step 2: Match with the question.
The question explicitly asks about the collection of all possible combinations, not just the efficient ones. Hence, the correct term is Production Possibility Set.
Final Answer: \[ \boxed{\text{Production Possibility Set}} \]