As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?

Question

Quizplus · Accepted Answer

As an economy moves from point to point along its production possibilities curve, the amount of each good or service produced changes. This is because the production possibility curve represents the maximum output combinations of two goods that an economy can achieve with its given resources and technology. Therefore, as the economy moves along the curve, it must give up some of one good to produce more of the other good.

As an Economy Moves from Point to Point Along Its