The Production Possibilities Curve Illustrates the Basic Principle That

Multiple Choice

The production possibilities curve illustrates the basic principle that

A) an economy's capacity to produce increases in proportion to its population.
B) if all resources of an economy are in use, more of one good can be produced only if less of another is produced.
C) an economy will automatically seek that output at which all of its resources are employed.
D) no opportunity cost exists in production.