A production possibilities curve shows
A)that resources are unlimited.
B)that people prefer one of the goods more than the other.
C)the maximum amounts of two goods that can be produced, assuming the full use of available resources.
D)combinations of capital and labor necessary to produce specific levels of output.

Question

Quizplus · Accepted Answer

A production possibilities curve illustrates the maximum possible output combinations of two goods that can be produced with available resources and technology, assuming all resources are fully and efficiently utilized.

A Production Possibilities Curve Shows