JAMB - Economics (1987 - No. 1)
A production possibility curve shows?
how much of the resources of society are used to produce a particular commodity
the rate of inflation
the rate of unemployment in the economy
the various combinations of two commodities that can be produced
Explicació
The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF assumes that all inputs are used efficiently.