In order to draw a production-possibilities curve, we need to assume:
A) full employment of resources.
B) that only goods and not services are produced.
C) a free market economic system.
D) full employment, but not necessarily efficient use, of resources.

Question

Quizplus · Accepted Answer

A production-possibilities curve (PPC) assumes full employment of resources to show the maximum possible output combinations of two goods or services that an economy can achieve when all resources are fully utilized.

In Order to Draw a Production-Possibilities Curve, We Need to Assume