Select the correct answer.
What does a production possibilities curve represent?
A. a combination of price and demand of goods and services
B. a combination of the goods produced before and after a change in a factor of production
C. a combination of two factors of production used to produce a single good or service
D. a combination of two goods that can be produced using limited resources
Answer (2)
The production possibilities curve represents the trade-offs between two goods that can be produced with limited resources, illustrating combinations of output. The correct answer is D: a combination of two goods that can be produced using limited resources. The PPC is crucial in understanding efficiency and opportunity costs in economics. ;
The production possibilities curve represents the trade-offs between two goods that can be produced using limited resources. The correct answer is D: a combination of two goods that can be produced using limited resources. It illustrates the maximum potential outputs and the concept of opportunity cost in economics.
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