The Production Possibilities Curve Illustrates the Basic Principle That

question 219

Multiple Choice

The production possibilities curve illustrates the basic principle that

• A)the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
• B)an economy will automatically obtain full employment of its resources.
• C)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.
• D)an economy's capacity to produce increases in proportion to its population size.

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