Chapter-4 Flashcards
Production possiblity curve (2 cards)
1
Q
What is the production possibility curve?
A
Production possibility curve is a curve that shows the maximum output of two types of products and combination of those products that can be produced with existing resources and technology.
2
Q
When will the production possibility curve shift to the right?
A
The production possibility curve will shift to the right if there is an increase in the quantity or quality of resources.
