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A production possibility curve shows

...

A production possibility curve shows

A.

How much of the resources of society are used to produce a particular commodity

B.

The rate of inflation

C.

The rate of unemployment in the economy

D.

The various combinations of two commodities that can be produced

Correct answer is D

The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF assumes that all inputs are used efficiently.