A Production Possibilities Curve with Quantities of Clothing and Food

question 302

Multiple Choice

A production possibilities curve with quantities of clothing and food on the axes shows which of the following? I. A society cannot have an unlimited amount of each good.
II) For an efficient society, an increase in clothing production will necessitate a decrease in food production.
III) A society will always produce the maximum amount of both clothing and food.

• A) I only
• B) II only
• C) III only
• D) Both I and II

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