Question

question 16
0.5 pts
the production - possibilities curve illustrates:
that there is no limit to what an economy can produce.
the existence of unlimited wants and resources.
the limitations that exist because of scarce resources.
that there is no limit to the level of output.

Explanation:

The production - possibilities curve (PPC) shows the different combinations of two goods an economy can produce. Resources are scarce, and the PPC illustrates the trade - offs and limitations. An economy cannot produce beyond the PPC due to resource scarcity. The first option is wrong as there are limits. The second option is incorrect because resources are scarce. The fourth option is wrong as there are output limits. The PPC shows limitations from scarce resources.

Answer:

The limitations that exist because of scarce resources.