Question

A production-possibilities curve indicates the: a. Combinations of goods and services an economy is actually producing. b. Maximum combinations of goods and services an economy can produce given its available resources and technology. c. Maximum combinations of goods and services an economy can produce given unlimited resources. d. Average combinations of goods and services an economy can produce given its available resources and technology.

Answer 1

Answer:

B -  Maximum combinations of goods and services an economy can produce given its available resources and technology

Explanation:

The production possibilities curve shows all possible combinations of goods and services an economy can produce given its available resources and technology.

The production possibilities curve shows the economy's potential. Any point outside the PPC represents an unattainable combination as that level of production is not possible in the economy with the current technology and a point inside the PPC represents inefficient utilization of resources.