A Production Possibilities Curve Shows

question 17

Multiple Choice

A production possibilities curve shows:

• A) the maximum combinations of two goods or services that can be produced when resources are fully used and the best technology is employed.
• B) the minimum combinations of two goods or services that can be produced when resources are fully used and the best technology is employed.
• C) the maximum combinations of two goods or services that can be produced when the unemployment rate in the economy is not above 6 percent.
• D) the maximum combinations of two goods or services that can be produced when the economy is at the trough of the business cycle.

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