Question

The PPC does not give the desirable point of production it only indicates the possible combination of __________ that can be produced with the available resources.

• A. two goods
• B. three goods
• C. number of goods
• D. single good

Answer 1

The correct option is A two goods

Production possibility curve shows all different attainable combinations of the production of two commodities that can be produced in an economy with given the resources and technology which are to be fully utilized. It sets a comparison between two goods which can be produced with the given resources.