Which of the following is true of a production possibilities curve?
A) It reveals the maximum amount of any two goods that can be produced from a fixed quantity of resources.
B) It reveals the ideal level of technology for a country.
C) It assumes that the prices of the two products are equal.
D) For a country that could produce many different goods, it shows which two goods are most important to produce.

Question

Quizplus · Accepted Answer

A production possibilities curve (PPC) illustrates the maximum possible output combinations of two goods that can be produced with available resources and technology, assuming all resources are fully and efficiently utilized.

Which of the Following Is True of a Production Possibilities