A production possibilities curve indicates that when resources are being used efficiently,
A) you can only produce more of one good only if you lower its price.
B) you can only produce more of one good only if you produce more of another good.
C) you can only produce more of one good only if you produce less of another good.
D) it is impossible to expand the total output of goods over time.

Question

Quizplus · Accepted Answer

A production possibilities curve shows the trade-offs between two goods. When resources are used efficiently, increasing the production of one good requires reducing the production of another due to limited resources.

A Production Possibilities Curve Indicates That When Resources Are Being