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 (1)
The production possibilities curve represents the combinations of two goods that can be produced with limited resources. The correct answer is option D, highlighting the trade-offs in production choices. It serves as a tool for understanding efficiency and opportunity costs in economic production. ;
