Question

What is a graphical representation of the combination of goods and services that can be produced in a situation?

Answer 1

A production possibilities curve is a graphical representation of the combination of goods and services that can be produced in a situation.  The PPC curve compares the opportunity cost of producing two or more goods in a society  A production line outside the PPC curve indicates efficiency whereas a line inside the PPC curve indicates inefficiency in production.  Product 1 is taken on x axis and product 2 is taken on y axis.