A point on a nation's production possibilities curve represents
A)An undesirable combination of goods and services.
B)Combinations of production that are unattainable,given current technology and resources.
C)Levels of production that will cause both unemployment and inflation.
D)The full employment of resources to achieve a particular combination of goods and services.

Question

Quizplus · Accepted Answer

A point on a nation's production possibilities curve represents the full employment of resources to achieve a particular combination of goods and services. It shows the maximum output of goods and services that can be produced with the available resources and technology. It does not represent an undesirable combination, unattainable combinations, or levels that will cause unemployment and inflation.

A Point on a Nation's Production Possibilities Curve Represents