Question

What does a production possibilities curve represent?Which of the following statements are true? Economic stability means fair distribution of goods in an economy. Full employment is a macroeconomic goal. Inflation is a fall in the prices of goods and services. Inflation is a rise in the prices of goods and services. Microeconomics studies the economy as a whole.

Answer 1

Answer:

What does a production possibilities curve represent?

The Production Possibilities Curve (PPC) is a model used to show the tradeoffs associated with allocating resources between the production of two goods. The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, inefficiency, economic growth, and contractions.

Which of the following statements are true?

Full employment is a macroeconomic goal.