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Q: The production possibilities curve illustrates the basic principle that

  • 1
    if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
  • 2
    the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
  • 3
    an economy will automatically obtain full employment of its resources.
  • 4
    an economy's capacity to produce increases in proportion to its population size.
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Answer : 1. "if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced."
Explanation :

Answer: A) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. Explanation: A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good is nothing but a production possibilities curve.

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