A Production Possibilities Curve Shows

Multiple Choice

A production possibilities curve shows:

A) the maximum combinations of two goods or services that can be produced when resources are fully used and the best technology is employed.
B) the minimum combinations of two goods or services that can be produced when resources are fully used and the best technology is employed.
C) the maximum combinations of two goods or services that can be produced when the unemployment rate in the economy is not above 6 percent.
D) the maximum combinations of two goods or services that can be produced when the economy is at the trough of the business cycle.