Harry produces 5 balloon rides and 5 boat rides an hour. Harry could not produce more balloon rides without producing fewer boat rides. Is Harry producing on his production possibilities frontier? Harry is __ his production possibilities frontier. A. moving along B. producing inside C. producing outside D. producing on

## Step 1<br />The Production Possibilities Frontier (PPF) is a curve that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized. <br /><br />## Step 2<br />In this problem, Harry is producing 5 balloon rides and 5 boat rides an hour. This indicates that he is utilizing all his resources efficiently.<br /><br />## Step 3<br />The problem also states that Harry cannot produce more balloon rides without producing fewer boat rides. This suggests that he is on his PPF, as he is not able to produce more of one good without sacrificing the production of the other.<br /><br />## Step 4<br />Therefore, Harry is producing on his PPF.