The Curve That Represents All Possible Combinations of Goods That

question 60

Multiple Choice

The curve that represents all possible combinations of goods that can be produced is called

• A) the production possibilities curve.
• B) the resource allocation curve.
• C) the efficiency curve.
• D) the supply curve.

---

Definitions:

Opportunity Costs

The expense of the best alternative given up to make a choice.

Factors Of Production

The resources used to produce goods and services. Labor and capital are examples of factors.

Increasing Opportunity Cost

Increasing opportunity cost implies that producing more of one good requires giving up an increasing amount of production of another good, reflecting resource specialization.

Consumer Goods

Products and services that are purchased for personal use or consumption.