A. scarcity of resources
B. economic development
C. inefficiency in the use of resources
D. unemployment of labour
Correct Answer: Option B
B. economic development
Explanation
In short, the production possibility curve is a curve that shows all possible combinations of two goods that can be produced by making full use of given resources and technology in an economy.
A production possibility curve measures the maximum output of two goods using a fixed amount of input. The input is any combination of the four factors of production. … Each point on the curve shows how much of each good will be produced when resources shift from making more of one good and less of the other.
