For a particular economy,the production possibilities curve shows the:
A) Maximum potential output.
B) Maximum level of pollution.
C) Change in the price level.
D) Level of market power.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum potential output that an economy can produce given its available resources and technology. It illustrates the trade-offs a society must make between producing different goods and services due to scarcity. It does not show levels of pollution, changes in the price level, or market power.

For a Particular Economy,the Production Possibilities Curve Shows The