Question

The curve showing the possibilities of production of desired good is known as

Answer 1

Answer:

production possibility curve or PPc

production possibility frontier or PPF

Answer 2

Answer:

The production possibility Curve is the correct answer.

Explanation:

The curve showing the possibilities of production of desired goods is known as the Production Possibility Frontier (PPF) or Production Possibility Curve (PPC).

• The PPF/PPC is a graphical representation of the maximum amount of two different goods that can be produced given a fixed set of resources and technology.
• It shows the various combinations of the two goods that can be produced using all available resources and technology, assuming that all resources are being used efficiently.

• The PPF/PPC is typically drawn as a curved line that slopes downwards, which represents the concept of opportunity cost.
• As an economy produces more of one good, it must give up some of the production of the other good.
• This trade-off is reflected in the downward slope of the PPF/PPC curve.
• Points inside the curve are considered inefficient because resources are not being used to their full potential, while points outside the curve are unattainable given the current resources and technology.

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