The production possibilities curve illustrates which two of the following essential principles?
A)Factors of production and price signals.
B)Scarce resources and opportunity cost.
C)Market mechanisms and laissez faire.
D)Economic growth and market failure.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the essential principles of scarce resources and opportunity cost. As resources are limited, producing more of one good means sacrificing the production of another good. This trade-off is represented on the production possibilities curve.

The Production Possibilities Curve Illustrates Which Two of the Following