The production possibilities curve is a graph of
A) the maximum amounts of labor and capital resources available for production.
B) various combinations of goods and services among which consumers are indifferent in terms of preference.
C) the maximum combinations of products that can be produced with the available resources.
D) the maximum amount of capital and labor that the economy can employ.

Question

Quizplus · Accepted Answer

The production possibilities curve (PPC) shows the maximum combinations of goods and services that can be produced with the available resources. It demonstrates the tradeoffs between producing one good over another due to limited resources, technology, and efficiency. The PPC is a graphical representation of the production possibility frontier (PPF) that shows the boundary of what an economy can produce given its resources and technology.

The Production Possibilities Curve Is a Graph of