The production possibilities curve shows
A) the relationship between inputs and output.
B) the minimum amount of one good that can be produced for every possible production level of the other good.
C) a positive relationship.
D) the maximum production of one good for every possible production level of the other good.
E) how increasing the production of one good allows production of the other good to also increase.

Question

Quizplus · Accepted Answer

The production possibilities curve shows the maximum production of one good for every possible production level of the other good. It represents the trade-offs a society faces when choosing how much of each good to produce. It illustrates the concept of opportunity cost, where producing more of one good means giving up some quantity of the other good that could have been produced.

The Production Possibilities Curve Shows