A production possibilities curve shows the relationship between the production of which two items? A. two types of factory goods only B. two types of farm goods only C. farm goods and factory goods only D. any two categories of goods

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Adriana Kemp

10 July, 02:19

A production possibilities curve shows the relationship between the production of which two items? A. two types of factory goods only B. two types of farm goods only C. farm goods and factory goods only D. any two categories of goods

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Peter Sullivan · Answer 1

D. any two categories of goods

Explanation:

The Production Possibilities Curve is used to represent graphically different production possibilities in a certain economy. It measures the maximum output of two goods, any kind of goods, this by using a fixed amount of input.

Basically it shows us how much of a good can be produced when another good is produced too using some of the same resources.