Which of the following is held constant when constructing a production possibilities curve for the economy?
A)The opportunity cost
B)The price level
C)The amount of resources
D)The combination of goods produced
E)The amount of goods produced

Question

Quizplus · Accepted Answer

The production possibilities curve (PPC) is a graphical representation of the maximum amount of two goods or services that can be produced with a given set of resources, technology, and level of efficiency. When constructing a PPC, the amount of resources available is held constant since the curve shows the trade-off between producing one good and the other with the same amount of resources. Therefore, the correct answer is C: the amount of resources.

Which of the Following Is Held Constant When Constructing a Production