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 resources are fully and efficiently utilized. It is based on the concept of scarcity (limited resources).

• Option A: Price and demand are related to the demand curve, not the PPC.
• Option B: The PPC is not about goods before and after a change in a factor of production in the way described.
• Option C: It's about two goods, not two factors for a single good.
• Option D: Correctly describes that it's a combination of two goods with limited resources.

Answer:

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