The production possibilities curve illustrates the basic principle that
A) an economy's capacity to produce is unrelated to its population.
B) if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced.
C) an economy will automatically move toward a point at which all of its resources are being used inefficiently.
D) if all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.

Question

Quizplus · Accepted Answer

The production possibilities curve demonstrates the trade-off between the production of two goods, showing that to produce more of one good, the economy must produce less of another if resources are used efficiently.

The Production Possibilities Curve Illustrates the Basic Principle That