A production possibilities curve shows
A)that in order to acquire more of one good,none of the alternative good must be given up.
B)that in order to acquire more of one good,some of the alternative good must be given up.
C)that any amount of goods could be produced by society if people worked harder.
D)various combinations of guns and butter that can be produced under conditions of 6 percent unemployment.

Question

Quizplus · Accepted Answer

A production possibilities curve shows the different combinations of two goods that can be produced in a given time frame with a fixed amount of resources. Since resources are limited, producing more of one good requires giving up some of the production of the other good. Therefore, the correct answer is B - in order to acquire more of one good, some of the alternative good must be given up.

A Production Possibilities Curve Shows