A production possibilities curve shows:
A) the two goods that are in the best interest of an economy to produce.
B) the most desirable amounts of two goods that an economy can produce.
C) the different amounts of two goods that an economy can produce when it is at full employment with fixed resources and technology.
D) all of the above.

Question

Quizplus · Accepted Answer

The production possibilities curve (PPC) illustrates the different amounts of two goods that an economy can produce when it is operating at full employment, using all its resources efficiently, and with a given level of technology. It does not inherently indicate which goods are in the best interest of an economy to produce or the most desirable amounts of those goods, but rather the potential production combinations.

A Production Possibilities Curve Shows