The production possibilities curve shows
A) the relationship between inputs and output.
B) the minimum amount of one good that can be produced for every possible production level of the other good.
C) a positive relationship.
D) the maximum production of one good for every possible production level of the other good.
E) how increasing the production of one good allows production of the other good to also increasE.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum production of one good for every possible production level of the other good. This is because resources are scarce and can only be allocated in a certain way, limiting the maximum amount that can be produced of each good. The curve is a graphical representation of the production possibilities frontier, which shows the different combinations of two goods that can be produced with the available resources and technology.

The Production Possibilities Curve Shows