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 (PPC) represents the maximum combinations of two goods that can be produced using limited resources. The correct answer is option D, illustrating trade-offs in production. The PPC is crucial for understanding opportunity costs and resource allocation in economics. ;
The production possibilities curve (PPC) represents the maximum combinations of two goods that can be produced using limited resources. The correct answer is option D, as it illustrates trade-offs and opportunity costs in production. Understanding the PPC helps in analyzing economic efficiency and resource allocation.
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