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Commerce · Q317

Economics

Graduate and Post Graduate · Commerce · question 317

Q317

The various combination of goods that can be produced in any economy when it uses its available resources and technology efficiency are depicted by

A.
Demand curve
B.
Production curve
C.
Supply curve
D.
Production possibility curve
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The various combination of goods that can be produced in any economy when it uses its available resources and technology efficiency are depicted by Production possibility curve. A production possibility frontier (PPF) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.