If an economy is functioning on its production possibilities curve for consumer products and capital goods, it can only generate more consumer goods at the expense of less capital items.
- The Production Possibilities Curve (PPC) is a model that illustrates the tradeoffs involved in allocating resources between the production of two items.
- Because the PPF is a curve based on two variables representing resources between two items, the data can be adjusted to see how scarcity, growth, inefficiency, efficiency, and other factors affect production.
- The trade-off between manufacturing one good versus another is measured by the production possibilities curve. Assume a country produces 20,000 oranges and 120,000 apples. That's point B on the chart. It must yield fewer apples in order to produce more oranges.
Thus this is the meaning of Production Possibility curve.
To learn more about Production Possibility curve, refer: https://brainly.com/question/26460726
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