The ____ curve helps us to see the benefits that arise from specialization and trade.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum combination of goods and services that an economy can produce at a given time with its limited resources. It helps us to understand the benefits of specialization and trade, as it shows that by specializing in a particular good or service, an economy can produce more of it and trade it for goods or services that it is less efficient at producing. This allows for a more efficient use of resources and an increase in overall output, which is represented by a movement along the production possibilities curve towards the point of specialization and trade.

The ____ Curve Helps Us to See the Benefits That