The production possibilities curve illustrates the basic principle that

A) if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.

B) the production of more of any one good will in time require smaller and smaller sacrifices of other goods.

C) an economy will automatically obtain full employment of its resources.

D) an economy’s capacity to produce increases in proportion to its population size.

View Answer
Option – A.