Question

What kinds of goods can be compared on a production possibilities curve?

A. farm goods and factory goods
B. two types of farm goods
C. two types of factory goods
D. any two categories of goods

Answer 1

The correct answer is letter D. any two categories of goods. These are kinds of goods that can be compared on a production possibilities curve. The production possibility curve is a hypothetical representation of two different goods that is obtained by shifting source form one production to the other.