Final answer:
The production possibilities curve represents the various combinations of two goods that an economy can produce with its fixed resources and technology. It's typically an outward-bowed line showing trade-offs and efficient production capacities. With economic growth, the curve can shift outward, indicating an increased capacity to produce.
Step-by-step explanation:
The production possibilities curve shows different combinations of goods that c) can be produced with the available technology and resources. The production possibilities frontier (PPF) models these different combinations and is depicted as a curved line, typically bowed outward, representing the trade-offs between two different goods. This curve demonstrates the maximum possible outputs for an economy given its resources and technological capabilities. Choices that fall under the PPF are considered inefficient as they don't utilize resources to the fullest, while choices beyond the PPF are unattainable with current resources and technology. However, as an economy grows and resources or technology improve, the PPF can shift outwards, enabling greater production.
In providing an example, if an economy can only produce skis and snowboards, the PPF will illustrate the trade-offs between producing different quantities of these two goods. For instance, at one end of the curve might be the maximum number of skis that can be produced with no snowboards, and at the other end, the maximum number of snowboards with no skis. Points in between represent different allocations of resources between the two goods.