Question on: JAMB Economics - 2023
The diagram above represents ___
A
Supply curve
B
Production possibility curve
C
indifference curve
D
Demand curve
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Correct Option: B
The production possibility curve (PPC), also known as the production possibility frontier, boundary, or transformation curve, illustrates the maximum output combinations of two goods or services that an economy can achieve given its resources and technology.
It represents the trade-offs between producing different goods, showcasing the concept of opportunity cost. Points on or inside the curve are attainable, while points outside the curve are unattainable with the existing resources.
The PPC helps to visualize the efficiency and limitations of an economy's production possibilities.
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