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 productions
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 illustrates the maximum combinations of two goods that can be produced with limited resources, showcasing trade-offs and opportunity costs. The correct answer to the question is D . This curve helps analyze economic efficiency and the choices that need to be made regarding resource allocation.
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The production possibilities curve represents a combination of two goods that can be produced with limited resources. It illustrates trade-offs and opportunity costs between the goods produced. Understanding the PPC is essential for analyzing economic efficiency and choices. ;
