A diagram that shows the maximum amount of one type of good that can be produced in an economy,given the production of the other is known as
A)an indifference curve.
B)the tradeoff schedule.
C)the production possibility frontier.
D)the balance of trade.

Question

Quizplus · Accepted Answer

The production possibility frontier shows the maximum amount of one type of good that can be produced in an economy, given the production of the other. Indifference curves represent the combinations of goods that give the same level of satisfaction to a consumer. The tradeoff schedule shows the different combinations of two goods that can be produced with a fixed amount of resources. The balance of trade refers to the difference between a country's exports and imports.

A Diagram That Shows the Maximum Amount of One Type