A graph that illustrates the maximum amount of one good that can be produced for every possible level of production of the other good is termed a(n)
A) production possibilities curve.
B) consumption possibilities curve.
C) production impossibilities curve.
D) comparative advantage curve.
E) absolute advantage curve.

Question

Quizplus · Accepted Answer

The description given in the question matches the definition of a production possibilities curve. It shows the different levels of production of two goods and the maximum amount of one good that can be produced for every possible level of production of the other good.

A Graph That Illustrates the Maximum Amount of One Good