Use the following figure.

-This production possibilities curve shows:
A) that the production of good X is directly related to the production of good Y.
B) that the combination of goods X and Y shown by point E is out of reach for this economy.
C) the different combinations of goods X and Y that this economy could produce at full employment.
D) all of the above.

Question

Use the following figure.

-This production possibilities curve shows:
A) that the production of good X is directly related to the production of good Y. 
B) that the combination of goods X and Y shown by point E is out of reach for this economy. 
C) the different combinations of goods X and Y that this economy could produce at full employment. 
D) all of the above.

Quizplus · Accepted Answer

The production possibilities curve (PPC) illustrates the different combinations of two goods that an economy can produce using all available resources efficiently, assuming full employment.

Use the Following Figure