The crossover point on a production possibilities frontier (PPF) is that production quantity where:

• A. the opportunity cost of producing both goods becomes zero
• B. the PPF shifts outward due to technological improvement
• C. the economy produces more of one good without reducing the output of the other
• D. the economy achieves productive efficiency by fully utilizing all resources

Answer: (D)

Verified step by step guidance

1. Understand what a Production Possibilities Frontier (PPF) represents: it shows the maximum possible output combinations of two goods that an economy can produce using all available resources efficiently.
2. Recall that points on the PPF curve represent productive efficiency, meaning the economy is fully utilizing its resources without any waste.
3. Recognize that the 'crossover point' on a PPF is not a standard term in microeconomics, but the description given matches the concept of productive efficiency, where the economy cannot produce more of one good without producing less of the other.
4. Analyze the options: zero opportunity cost is unlikely on the PPF since producing more of one good usually requires sacrificing some of the other; an outward shift of the PPF indicates growth or technological improvement, not a point on the curve; producing more of one good without reducing the other is only possible inside the PPF, not on it.
5. Conclude that the correct interpretation of the 'crossover point' is where the economy achieves productive efficiency by fully utilizing all resources, which corresponds to any point on the PPF curve.