The production possibilities curve tells us:

A) the specific combination of two products that is most desired by society.
B) that costs do not change as society varies its output.
C) that costs are irrelevant in a society that has fixed resources.
D) the combinations of two goods that can be produced with society's available resources.

Question

Elijah Kalefya · Accepted Answer

Final Answer : D, Explanation :  The production possibilities curve shows the different combinations of two goods that a society can produce with its available resources, given its level of technology and assumptions about resources allocation. It demonstrates the concept of opportunity cost, as producing more of one good requires sacrificing production of another good. Therefore, the correct answer is D.

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