Figure 1.2
-Which of the following does the production possibilities curve illustrate?

Question

Figure 1.2 
-Which of the following does the production possibilities curve illustrate?

Quizplus · Accepted Answer

The production possibilities curve illustrates all of the options listed, including the tradeoffs facing a society, the fact that more of one product can be produced only by reducing the quantity of other products that are being produced assuming that resources are being used efficiently, the maximum output that can be produced with a limited amount of resources, and the opportunity cost of alternative choices.

Figure 1.2 -Which of the Following Does the Production Possibilities Curve Illustrate