The production possibilities curve shows:
A)the various combinations of two goods which can be produced when society uses its scarce resources efficiently.
B)the minimum outputs of two goods which will sustain a society.
C)the various combinations of two goods which can be produced when some resources are unemployed.
D)the ideal, but unattainable, combinations of two goods which would maximize consumer satisfactions.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the various combinations of two goods which can be produced when society uses its scarce resources efficiently. It represents the trade-offs that a society must make between producing different goods with limited resources.

The Production Possibilities Curve Shows