A production possibilities table or graph shows:
A) different ways a particular good can be produced.
B) different combinations of goods that a particular resource can produce.
C) different amounts of two goods that an economy can produce at full employment with resources and technology held constant.
D) the time it takes to produce two goods when the economy is at full employment and resources and technology are held constant.

Question

Quizplus · Accepted Answer

A production possibilities table or graph illustrates the different quantities of two goods that an economy can produce when all its resources are fully and efficiently employed, assuming the technology and resources available remain constant. It demonstrates the trade-offs and opportunity costs associated with allocating resources between the production of two different goods.

A Production Possibilities Table or Graph Shows