The production possibilities curve represents:
A)the maximum amount of labour and capital available for production.
B)combinations of goods and services among which consumers are indifferent.
C)maximum combinations of products available with fixed resources and technology.
D)the maximum rate of growth of capital and labour in an economy.

Question

Quizplus · Accepted Answer

The production possibilities curve (PPC) shows the maximum combinations of goods and services that can be produced with a given set of resources and technology. The PPC illustrates the trade-offs that occur when resources are reallocated between the production of two different goods.

The Production Possibilities Curve Represents