The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-An economy's PPC illustrates the extent to which the economy consumes what it produces.

Quizplus · Accepted Answer

An economy's PPC illustrates its production capabilities, showing the various combinations of two goods that can be produced with the given resources and technology. It does not necessarily reflect the extent to which the economy consumes what it produces, as consumption decisions can be influenced by factors such as preferences, prices, and international trade.