Question $3($Mandatory$)(3\mathrm{.}26$ points$)$

The production possibilities curve:

A$)$ shows all of those combinations of two goods that are most preferred by society.

B$)$ shows all of those levels of production that are consistent with a stable price level.

C$)$ indicates that any combination of goods lying outside the curve is economically inefficient.

D$)$ is a frontier between all combinations of two goods that can be produced and those combinations that cannot be produced.