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: Option D
Explanation
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.