The production possibilities curve shows:
A) the various combinations of two goods that can be produced when society employs all of its scarce resources.
B) the minimum outputs of two goods that will sustain a society.
C) the various combinations of two goods that can be produced when some resources are unemployed.
D) the ideal,but unattainable,combinations of two goods that would maximize consumer satisfactions.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the various combinations of two goods that can be produced when society employs all of its scarce resources. It demonstrates the trade-offs that society must make in allocating resources between the production of different goods. The curve represents the limit of what can be produced given the available resources and technology.

The Production Possibilities Curve Shows