a production possibilities curve represents\na. all possible combinations of output that could be produced…
a production possibilities curve represents\na. all possible combinations of output that could be produced assuming changing technology.\nb. all possible combinations of output that could be produced assuming fixed productive resources and their efficient use.\nc. all possible combinations of output that could be produced at zero opportunity cost.\nd. the notion that greater quantities of all goods may be produced.
Answer
Brief Explanations:
A production - possibilities curve (PPC) shows the maximum combinations of two goods that can be produced when all productive resources are fully and efficiently utilized, assuming a fixed level of technology and fixed productive resources. Option A is incorrect as PPC assumes fixed technology. Option C is wrong because production always has an opportunity cost. Option D is incorrect as PPC represents trade - offs, not the ability to produce more of all goods without limits.
Answer:
B. all possible combinations of output that could be produced assuming fixed productive resources and their efficient use.