Which of the following is not correct? A typical production possibilities curve:
A) indicates how much of two products a society can produce.
B) reveals how much each additional unit of one product will cost in terms of the other product.
C) specifies how much of each product society should produce.
D) indicates that to produce more of one product society must forgo larger and larger amounts of the other product.

Question

Quizplus · Accepted Answer

A production possibilities curve does not specify how much of each product society should produce; rather, it shows the maximum amount of two products that can be produced with given resources and technology. The choice that is incorrect is C, which implies that there is a "correct" amount of each product to produce, when in reality it depends on societal preferences and needs.

Which of the Following Is Not Correct? a Typical Production