For a self-sufficient producer, the production possibilities frontier:

For a self-sufficient producer, the production possibilities frontier:

a. is the same as the consumption possibilities frontier.

b. is greater than the consumption possibilities frontier.

c. is less than the consumption possibilities frontier.

d. is always a straight line.

Answer: a. is the same as the consumption possibilities frontier.

Since the producer is independent in this case and we are considering how he can produce more of one good and less of the other, then PPC and CPC frontier is the same. A closed economy defines a situation in which there are no interactions with other economies, thus the economy can only produce and consume goods and services exclusively from within the economy. Thus, the maximum quantities of output that can be produced, given by the PPF are also the maximum availability of goods and services that can be enjoyed by the people which is given by the CPF. The first goes hand in hand with the second one because, in a wholly autarchic economy there are no exports or imports to decouple the production alternatives from the consumption ones.