The production possibilities curve shows how an economy increases its output with more resources.

Question

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The production possibilities curve (PPC) illustrates the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized, given the current state of technology and resources. It does not show how output increases with more resources, but rather the trade-offs and opportunity costs of different production choices.

The Production Possibilities Curve Shows How an Economy Increases Its