Which of the following basic concepts are illustrated by a Production Possibilities Curve?
A)Efficiency, raw materials, availability, prices
B)Efficiency, opportunity costs, production rate
C)Scarcity, taxation level, prices
D)Scarcity, opportunity costs, prices

Question

Quizplus · Accepted Answer

A Production Possibilities Curve illustrates efficiency, opportunity costs, and production rate.
Key Takeaway: A Production Possibilities Curve (PPC) illustrates the different rates of production of two goods given limited resources. The PPC shows the efficiency, opportunity costs, and production rates of the two goods. The PPC also shows the maximum obtainable amount that is produced for both products under certain circumstances.

Which of the Following Basic Concepts Are Illustrated by a Production