Q. The production possibilities curve illustrates the basic principle that
A) the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
B) 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.
C) an economy's capacity to produce increases in proportion to its population size.
D) an economy will automatically obtain full employment of its resources.
✔ Correct Answer: 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.
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