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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 :

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Final answer:

A production possibilities curve displays an economy's production capabilities, showcasing scarcity and comparative advantage.


Explanation:

A production possibilities curve shows the combinations of two goods an economy is capable of producing. The downward slope of the curve signifies scarcity, and the bowed-out shape represents comparative advantage leading to the law of increasing opportunity cost.


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