The production possibilities curve represents the maximum feasible production combinations resulting from
A) the mix of current resources that utilizes all available inputs using current technology.
B) a fixed amount of demand by consumers.
C) the lack of trade-offs in production.
D) the lack of technology used in production.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum possible combinations of goods that can be produced using all available resources and technology. It represents the trade-offs that must be made between producing different goods, given the limited resources available. Therefore, option A correctly explains the production possibilities curve.

The Production Possibilities Curve Represents the Maximum Feasible Production Combinations