Assume there are only two goods produced in the economy (having fixed amount of resources and technology), Good A and Good B. The quantities of Good A and Good B which can be produced using given resources are plotted on a graph with good A on x-axis and Good B on y-axis. Different combinations of A and B when plotted and joined gave a downward sloping concave curve. One point, Point F lies above the curve. Point E lies below the curve.

The curve gives the _______ of Good A that can be produced in the economy for any given amount of Good B and vice-versa.

Which of the following options suits best in the above blank?

Maximum amount

All points on Production Possibility Curve (PPF) means that resources are fully utilized. Since the resources are being utilized fully, PPF shows the maximum amount of a good that can be produced with a given amount of another good.