The production-possibility curve alone does not provide enough information to determine the amount of each good produced by the economy.

Question

Quizplus · Accepted Answer

The production-possibility curve only shows the maximum possible combinations of two goods that can be produced with a given amount of resources, it does not specify how much of each good will actually be produced. Other economic factors such as demand and supply, costs of production, and market conditions will also influence the final amount of each good produced.

The Production-Possibility Curve Alone Does Not Provide Enough Information to Determine