In a graph of the production possibilities curve, the two axes of the graph indicate the:
A) Prices of the two products that a nation can produce
B) Maximum quantities of the two resources that a nation possesses
C) Price of the products on the vertical axis, and quantities on the horizontal
D) Quantities of the two products that a nation can produce

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum quantities of the two products that a nation can produce given its resources and technology. Therefore, the two axes of the graph represent the quantities of the two products, with one product on the x-axis and the other product on the y-axis. Hence, option D is the correct answer.

In a Graph of the Production Possibilities Curve, the Two