The production possibilities curve is:
a. a graph that shows the combinations of output which are most profitable to produce
b. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
c. a graph that shows the various combinations of resources that can be used to produce a given level of output.
d. a curve that shows the quantity of output that will be offered for sale at various prices.
b
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All else equal, as the price of a product falls, the quantity supplied increases
Indicate whether the statement is true or false
In the aggregate demand and aggregate supply model,
a. the factors that cause the demand curves in both models to slope downward are the same. b. the factors that cause the supply curves in both models to slope upward are the same. c. the upward-sloping aggregate demand curve intersects the downward-sloping aggregate supply curve to determine the economy's price level and GDP. d. the upward-sloping aggregate supply curve intersects the downward-sloping aggregate demand curve to determine the economy's price level and GDP. e. the price level never changes even with shifts in aggregate demand and aggregate supply.