A production possibility curve shows

the combinations of two goods a consumer can buy with a given incomeCorrect answerYour answerhow the price of a good changes over timeCorrect answerYour answerthe combinations of two goods an economy can produce with given resources and technology, using them fully and efficientlyCorrect answerYour answerhow much of a good buyers want at each priceCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

The PPC is the boundary of what can be produced when resources are fully used with the given technology.
Combinations a consumer can buy are shown by the budget line, not the PPC.

Worth noting

The consumer option describes the budget line, a different curve met in consumer theory.

Concept: Meaning of the PPC
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe production possibility curve

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Ten questions from Central Problems & the PPC, at your own pace.

A production possibility curve shows

Explanation