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Why can an economy not produce unlimited quantities of every good at once?
A
Choice means consumers have preferences, so unlimited quantities of every good cannot be produced simultaneously.
B
Productive efficiency means output is maximised, so unlimited quantities of every good cannot be produced simultaneously.
C
Scarcity means resources are limited, so unlimited quantities of every good cannot be produced simultaneously.
D
Demand means firms face competition, so unlimited quantities of every good cannot be produced simultaneously.
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1.5.1 nature and meaning of a production possibility curve (PPC) Flashcards
24 flashcards on CIE Intl A Level Economics 1.5.1 nature and meaning of a production possibility curve (PPC): the key terms and definitions you need to recall.