When determining the production possibilities curve
A) the trade-off between the goods in the economy remains constant.
B) the amount of productive resources remains constant.
C) the prices of the goods are used.
D) the prices of resources are used.

Question

Quizplus · Accepted Answer

The production possibilities curve illustrates the maximum combinations of two goods that can be produced with the available resources in an economy. Therefore, the amount of resources available remains constant. Choices A, C, and D are not relevant when determining the production possibilities curve.

When Determining the Production Possibilities Curve