A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in

A) consumer tastes and preferences.
B) resource availability and technological capabilities.
C) the nations' incomes and income distribution.
D) unemployment and inflation rates.

The production possibilities curve (PPC) illustrates the maximum amount of two goods that an economy can produce given its resources and technology. Differences in PPCs between nations primarily reflect variations in resource availability and technological capabilities, not consumer preferences, income levels, or macroeconomic conditions like unemployment and inflation.