The production possibilities curve demonstrate which of the following concepts?
A) scarcity
B) choice
C) trade-offs
D) all of the above

Question

Quizplus · Accepted Answer

The production possibilities curve demonstrates all three concepts of scarcity, choice, and trade-offs. It shows the limited resources (scarcity) available to produce different goods and services, and the choice of producing one in the expense of the other (choice). It also illustrates the trade-offs that come with any decision to allocate resources in a certain way, as increasing production of one good or service necessarily means giving up some of the production of another.

The Production Possibilities Curve Demonstrate Which of the Following Concepts