Attainable Combinations of Two Goods in an Economy
- In an economy, the production possibilities frontier (PPF) represents all the possible combinations of two goods that can be produced with the given resources and technology.
- Each point on the PPF curve shows a combination of the two goods that can be produced efficiently.
- These combinations indicate the maximum output that the economy can achieve with its current resources and technology.

Level of Output
- While all attainable combinations of two goods point to the same level of output on the PPF curve, they do not necessarily indicate the same quantity of each good being produced.
- The slope of the PPF curve represents the opportunity cost of producing one good in terms of the other.
- If the economy moves from one point on the PPF curve to another, it must give up some quantity of one good to produce more of the other.
- Therefore, even though the level of output remains the same along the PPF curve, the mix of goods being produced may vary at different points.

Efficiency and Trade-offs
- Points inside the PPF curve represent inefficient production levels where resources are not fully utilized.
- Points outside the PPF curve are unattainable with the current resources and technology.
- As the economy moves along the PPF curve, it faces trade-offs in allocating resources between the production of the two goods.
- By choosing the most efficient combination of goods along the PPF curve, the economy can maximize its output given the constraints it faces.