A graph that illustrates the maximum amount of one good that can be produced for every possible level of production of the other good is called a(n):
A)production possibilities curve.
B)consumption possibilities curve.
C)production function.
D)supply curve.

Question

Quizplus · Accepted Answer

A production possibilities curve shows the maximum amount of one good that can be produced for every possible level of production of the other good. It is used to illustrate the concept of opportunity cost and the trade-offs that a society faces when allocating its scarce resources between competing uses.

A Graph That Illustrates the Maximum Amount of One Good