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Q:

The production possibilities curve illustrates the basic principle that

A) an economy's capacity to produce increases in proportion to its population size. 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 seek that level of output at which all of its resources are employed. D) 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.

Answer:   D) 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.



Explanation:
Subject: Indian Economy
Exam Prep: Bank Exams
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