The production possibilities curve shows that: a. an economy that is operating efficiently can have more of one good without giving up some of another good. b. no output combination is impossible. c. some of one good must be given up to get more of another good in an economy that is operating efficiently. d. scarcity can be eliminated.

The **Production Possibilities Curve (PPC)** illustrates the maximum combination of two goods or services that an economy can produce efficiently, given its resources and technology. Here's a breakdown of the options: - **a.** *An economy that is operating efficiently can have more of one good without giving up some of another good.* **Incorrect.** On the PPC, to increase the production of one good, the economy must decrease the production of another due to limited resources. - **b.** *No output combination is impossible.* **Incorrect.** Points **inside** the PPC represent inefficient use of resources, and points **outside** are currently unattainable given existing resources and technology. - **c.** *Some of one good must be given up to get more of another good in an economy that is operating efficiently.* **Correct.** This reflects the concept of **opportunity cost** inherent in the PPC. To increase production of one good, the economy must sacrifice some quantity of another good. - **d.** *Scarcity can be eliminated.* **Incorrect.** Scarcity is a fundamental economic issue that the PPC inherently represents. **Answer:** **c. some of one good must be given up to get more of another good in an economy that is operating efficiently.**