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 can be produced when all resources are fully and efficiently utilized given the existing technology and limited resources. It is not about price - demand combinations (A is wrong), not about goods produced before and after a factor change (B is wrong), and not about factors for a single good (C is wrong).

Answer:

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