The production possibilities curve tells us
A) the specific combination of two products that is most desired by society.
B) that costs do not change as society varies its output.
C) that costs are irrelevant in a society that has fixed resources.
D) the combinations of two goods that can be produced with society's available resources.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the different combinations of two goods that an economy can produce with its available resources. It is a graphical representation of the trade-offs that an economy has to make between producing different goods. Therefore, the correct choice is D.

The Production Possibilities Curve Tells Us