The production possibilities curve is a graph of:
A) The maximum amounts of labor and capital resources available for production
B) Various combinations of goods and services among which consumers are indifferent
C) The maximum combinations of products that can be produced
D) The maximum amount of capital and labor that the economy can employ

Question

Quizplus · Accepted Answer

The production possibilities curve (PPC) is a graphical representation of the maximum combination of products an economy can produce given its resources and technology. It shows the various possible combinations of two goods that can be produced with the available resources efficiently. Thus the correct option is C.

The Production Possibilities Curve Is a Graph Of