The production possibilities curve shows all possible combinations of
A) two goods that are desired by society.
B) two goods that can be efficiently produced with a given set of resources.
C) two goods that can be purchased given the prices of the goods.
D) two goods that two countries can trade with each other.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the different combinations of two goods that can be efficiently produced with a given set of resources. It shows the trade-offs that must be made between producing one good and producing another, given the limited resources available. Choices A, C, and D are incorrect because they do not accurately describe the purpose of the production possibilities curve.

The Production Possibilities Curve Shows All Possible Combinations of