On a production possibilities curve, the opportunity cost of good X, in terms of good Y, is represented by the: a. distance to the curve from the vertical axis. b. distance to the curve from the horizontal axis. c. movement along the curve. d. All of these are true.

C. Movement along the curve.

Explanation:

Production possibility curve otherwise known as production possibility boundary is a graph that shows the various combinations of the amounts of two goods that can be produced by an individual, a firm or a country within the efficient use of given resources and technology.

The concept of opportunity and production possibility curve are closely related because PPC shows that their is an increasing opportunity cost (alternative forgone) of one good in other to produce another goods.

The production possibility curve shows the increasing opportunity cost of two goods with the movement along the curve. The bowed out shape of the PPC usually indicates that the opportunity cost of production is increasing.

The correct answer is letter "C": movement along the curve.

Explanation:

The Production Possibility Curve (PPC) aims to provide companies guidelines to achieve the maximum level of production using the maximum number of resources available. Plotted in a graph, with a vertical "X" axis and a horizontal "Y" axis, each variable represents producing one particular product. Producing one more unit of goods in the "X" axis will imply producing fewer units of the goods in the "Y" axis and vice versa.

Thus, the slope of the PPC will represent the opportunity cost of producing goods in the "X" axis over the goods in the "Y" axis.