Question

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

Explanation:

A production - possibilities curve (PPC) shows the different combinations of two goods that an economy can produce when all of its resources are fully and efficiently utilized. It is based on the concept of limited resources and the trade - offs in production. Option A is about price and demand which is not what a PPC represents. Option B is about production before and after a change in a factor of production, not the core concept of PPC. Option C is about factors of production for a single good, while PPC is about two goods. Option D correctly describes what a PPC represents.

Answer:

D. a combination of two goods that can be produced using limited resources