The production possibilities curve represents which of the following?
A)the amount of goods attainable with variable resources
B)the maximum amount of goods attainable with variable resources
C)maximum combinations of goods attainable with fixed resources
D)the amount of goods attainable if prices decline

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum combinations of goods attainable with fixed resources. This means that the resources used to produce the goods are limited and cannot vary. Therefore, the curve shows the maximum possible output of one good that can be produced given the production level of the other good.

The Production Possibilities Curve Represents Which of the Following