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 costs of resources used in production

Question

Quizplus · Accepted Answer

The production possibilities curve represents the different combinations of two goods that an economy can produce given its limited resources at a given point in time. Therefore, the amount of resources is held constant when constructing the curve. The opportunity cost varies depending on the combination of goods produced, and the price level and costs of resources used in production are not relevant for constructing the curve.

Which of the Following Is Held Constant When Constructing a Production