Given below is a production possibility schedule showing different quantities of two commodities – Cars and Computers which can be produced in an economy.
|
|
Cars |
Computers |
|
A. |
150 |
10 |
|
B. |
140 |
20 |
|
C. |
120 |
30 |
|
D. |
90 |
40 |
What is Production Possibility Curve known as?
Answer & explanation
Correct answer: option 4
Production Possibility Curve can also be called Production Possibility Frontier or Transformation curve. These terms all refer to the same economic concept that illustrates the relationship between the maximum quantities of two goods that an economy can produce with its limited resources.