The production possibilities curve shows:
A) the minimum production of one good for every possible production level of the other good.
B) how increasing the inputs used for one good increases the production of the other good.
C) the maximum production of one good for every possible production level of the other good.
D) how increasing the production of one good allows production of the other good to also rise.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum production of one good for every possible production level of the other good. It represents the tradeoff between producing one good over the other, given the limited resources available. Therefore, any point inside the production possibility frontier is inefficient, and any point outside the frontier is not attainable with the current resources and technology.

The Production Possibilities Curve Shows