What does a production possibility frontier represent? What ...

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What does a production possibility frontier represent?
 
  What will be an ideal response?

Question 2

Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse.
 
  To ensure this recovery Ministers agreed a 10 percent cut in days at sea (for North Sea cod), EU Fisheries Commissioner Joe Borg stated in 2008. What is the goal of this policy? A) To reduce the number of fishing days to the point where marginal cost per day equals marginal benefit
  B) To reduce the number of fishing days to the point where marginal social cost per day equals marginal benefit
  C) To reduce the number of fishing days to the point where marginal social benefit per day equals marginal benefit
  D) To reduce the number of fishing days to the point where marginal social cost per day equals marginal social benefit

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Answer to Question 1

A production possibility frontier is a graph that shows all of the combinations of goods and services that can be produced if all of society's resources are used efficiently.

Answer to Question 2

D