A production possibilities curve illustrates
A) scarcity.
B) market prices.
C) consumer preferences.
D) the distribution of income.

Question

Quizplus · Accepted Answer

A production possibilities curve shows the maximum combination of goods and services that an economy can produce given its resources and technology. This reflects the concept of scarcity, which is the fundamental economic problem of having unlimited wants and needs with limited resources to satisfy them. Therefore, the best choice is A - scarcity.

A Production Possibilities Curve Illustrates