The production possibilities curve illustrates the basic principle that
A)the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
B)an economy will automatically obtain full employment of its resources.
C)if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
D)an economy's capacity to produce increases in proportion to its population size.

Question

Quizplus · Accepted Answer

The production possibilities curve demonstrates the trade-offs in production volume between two choices, showing that producing more of one good requires sacrificing the production of another when resources are fully utilized.

The Production Possibilities Curve Illustrates the Basic Principle That