Practice Quiz

CLEP Social Sciences

Category - Social Sciences

Start a Study Session Sign up for Question of the Day
Which of the following basic concepts are illustrated by a Production Possibilities Curve?
  1. Efficiency, raw materials, availability, prices
  2. Efficiency, opportunity costs, production rate
  3. Scarcity, taxation level, prices
  4. Scarcity, opportunity costs, prices
Explanation
Answer - B - A Production Possibilities Curve illustrates efficiency, opportunity costs, and production rate.

Key Takeaway: A Production Possibilities Curve (PPC) illustrates the different rates of production of two goods given limited resources. The PPC shows the efficiency, opportunity costs, and production rates of the two goods. The PPC also shows the maximum obtainable amount that is produced for both products under certain circumstances.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Related questions

Most popular on PracticeQuiz