Final answer:
A production possibilities curve is a graphical representation of the choices involved in the problem of scarcity. It shows the maximum possible output of one good given the level of production of the other good.
Step-by-step explanation:
A production possibilities curve is a graphical representation of the alternative combinations of goods and services that an economy can produce. It illustrates the choices involved in the problem of scarcity, where limited resources conflict with unlimited needs and wants. The curve shows the maximum possible output of one good given the level of production of the other good, assuming that resources and technology are fixed.