Understanding the Production Possibilities Curve

A graph that represents the relationship between production of two goods

A real-world representation of an economy's production possibilities

A model that shows alternative ways that an economy can use its scarce resources (correct)

A tool used by economists to make decisions

Scarcity, trade-offs, opportunity costs, and efficiency (correct)

The decisions made by economists

The real-world production possibilities

The relationship between the production of two goods

Unlimited goods can be produced, partial employment of resources, flexible resources, changing technology

Limited goods can be produced, no employment of resources, flexible resources, changing technology

Multiple goods can be produced, no employment of resources, unlimited resources, no technology

Only two goods can be produced, full employment of resources, fixed resources, fixed technology (correct)

<p>A specific combination of goods that can be produced given full employment of resources</p> Signup and view all the answers

<p>Resource allocation</p> Signup and view all the answers

<p>They are fixed</p> Signup and view all the answers

<p>No, it is a simplified model</p> Signup and view all the answers