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An economy's production possibilities curve implies that:

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If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.


An economy will automatically move toward a point that lies outside of the production possibilities curve unless proper government policy constrains production.


Over time, it is generally impossible for a country to expand its production of goods.


If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods.

 

Top Answer

ans A is right.That is why ppf is concave which means opportunity cost of... View the full answer

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