Which of the following does a production possibilities curve best illustrate?
A)The concept of achieving an impossible goal
B)The concept of unlimited possibilities
C)The concept of an opportunity cost
D)The elimination of scarcity
E)The concept of economic interaction

Question

Quizplus · Accepted Answer

A production possibilities curve illustrates the concept of opportunity cost, which is the trade-off between two choices when allocating scarce resources. The curve shows the maximum output that can be produced with the given resources and technology, and any choice to produce more of one good requires giving up some production of the other good.

Which of the Following Does a Production Possibilities Curve Best