A production possibilities curve shows
A)what happens to the amount of available resources if it is not possible to produce a good.
B)what can be produced with unlimited resources.
C)what happens as available resources in an economy are moved from producing one type of good to another type, or vice versa.
D)the choice between producing some goods versus other goods with unlimited resources.
E)the different kinds of products that a firm can produce.

Question

Quizplus · Accepted Answer

A production possibilities curve shows the efficient combinations of two goods that can be produced with a given set of resources. It represents the trade-offs that an economy faces when allocating its scarce resources between different uses. The movement along the curve illustrates the opportunity cost of producing one good in terms of the other. Therefore, option C is the correct answer as it explains the movement of available resources from producing one type of good to another type.

A Production Possibilities Curve Shows