The production possibilities curve
a. shows all combinations of goods that society most desires.
b. indicates that any combination of goods lying outside the curve is attainable.
c. is bowed out from the origin.
d. is bowed in toward the origin.
Production possibility curve:
Production possibility curve of an economy shows if the society efficiently uses its scarce resources, what various combinations of two goods it can produce. The more efficiently it makes use of its resources, the higher chances it gets to produce on the PP curve.
Answer and Explanation: 1
_Option c, is bowed out from the origin_
The production possibility curve does not show those combination of goods that the society most desires,...
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fromChapter 11 / Lesson 28
Understand what the production possibilities curve is, and learn how to construct and interpret a production possibilities curve along with the example.