The production possibility curve can be used to explain the underlying concepts of
ECONOMICS
JAMB 2008
The production possibility curve can be used to explain the underlying concepts of
- A. scale of preference and choice
- B. opportunity cost and choice
- C. wants and means
- D. opportunity cost and scale of preference
Correct Answer: B. opportunity cost and choice
Explanation
The production possibilities curve (PPC) is a graph that shows all of the different combinations of output that can be produced given current resources and technology. It explains the concept of opportunity cost and choice, where an alternative is given up when a choice (the decision made about the use of scarce resources)
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