A production possibilities curve shows:

A) that resources are unlimited.
B) that people prefer one of the goods more than the other.
C) the maximum amounts of two goods that can be produced,assuming the full use of available resources.
D) combinations of capital and labor necessary to produce specific levels of output.

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are used efficiently.

Available Resources

The tangible and intangible assets that can be used or mobilized to achieve specific objectives or to produce goods and services.