Answer:
The correct answer is production possibilities model.
Explanation:
The production possibility model in an economy shows the different combination of goods that can be produced using the available resources.
Production possibility curve shows the different bundles of goods that can be produced using the available resources. The slope of the production possibility curve represents the marginal opportunity cost of producing a good.
Each point on the curve shows full employment of all the resources. The points above the curve are unattainable because they require more resources. The points below the curve are attainable but inefficient as all the resources are not being fully utilized.
