Which of the following is not shown on a production possibilities curve?

Question

the opportunity cost of a decision to produce more of one good or service

whether an economy has grown or shrunk

the efficiency of an economy

all of the goods and services an economy has the ability to produce

Answer 1

The correct answer is: whether an economy has grown or shrunk.

A production possibilities curve (PPC) illustrates the maximum possible output combinations of two goods or services that an economy can achieve given its resources and technology. It shows opportunity costs, efficiency, and the variety of goods and services that can be produced, but it does not directly indicate whether an economy has grown or shrunk over time. Changes in the PPC itself would indicate growth or shrinkage, but the curve as it stands at a single point in time does not provide that information.