Combinations outside of the production possibilities frontier (PPF) are:

• A. Associated with underutilization of resources
• B. Productively efficient
• C. Unattainable with current resources and technology
• D. Attainable and represent full employment

Answer: (C)

Verified step by step guidance

1. Step 1: Understand what the Production Possibilities Frontier (PPF) represents. The PPF shows the maximum possible output combinations of two goods that an economy can produce using all available resources efficiently and current technology.
2. Step 2: Recognize that points on the PPF curve represent productively efficient combinations, where resources are fully utilized without waste.
3. Step 3: Points inside the PPF indicate underutilization of resources, meaning the economy is not producing at its full potential.
4. Step 4: Points outside the PPF represent combinations that are currently unattainable given the existing resources and technology, because producing those combinations would require more resources or better technology than currently available.
5. Step 5: Therefore, combinations outside the PPF are not attainable with current resources and technology, distinguishing them from points on or inside the frontier.