The production possibilities curve tells us:
A)what specific combinations of two products is most desired by society.
B)that costs do not change as society varies its output.
C)costs are irrelevant in a society which has fixed resources.
D)what combinations of two goods can be produced with society's available resources.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the combinations of two goods that can be produced with society's available resources. It demonstrates the concept of opportunity cost and the trade-offs that must be made between producing different goods.

The Production Possibilities Curve Tells Us