25. Which of the following statements best describes the purpose of the production possibilities curve?

The production possibilities curve (PPC) is a graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized. It illustrates the trade-off between producing one good over another, given the available resources and technology. The curve demonstrates the opportunity cost of allocating resources to one good over another, as increasing the production of one good requires sacrificing the production of another. The PPC also highlights the concept of economic efficiency, where points on the curve represent efficient use of resources, while points inside the curve indicate inefficient use.