Production possibilities curve analysis includes the idea of:

Question

Quizplus · Accepted Answer

Production possibilities curve analysis includes all three concepts of opportunity cost, scarcity, and maximum production choices. Opportunity cost refers to the trade-offs made when choosing to produce one good over another. Scarcity means that resources are limited and not all wants and needs can be satisfied. Finally, the production possibilities curve shows the maximum combination of goods that can be produced given the available resources and technology. Therefore, all of the above choices are included in the analysis of production possibilities.

Production Possibilities Curve Analysis Includes the Idea Of