The curve gives the maximum amount of corn that can be produced in the economy for any given amount of cotton and vice versa. This curve is called...........

Production Possibility Frontier.

The correct answer is Option (3) → Production Possibility Frontier.

Production Possibility Frontier (PPF) is a curve that shows the maximum possible output combinations of two goods (such as corn and cotton) that an economy can produce using all its resources efficiently. It reflects the trade-off between the two goods — producing more of one means producing less of the other.

Option (1) → Production Possibility Set. This refers to all combinations of two goods that can be produced with available resources, including those that are inefficient or unattainable. Unlike the PPF, it is not limited to maximum efficiency.

Option (2) → Isoquant Curve. An isoquant shows different combinations of inputs (like labour and capital) that produce the same level of output for a firm. It is used in the context of production at the firm level.

Option (4) → Indifference Curve. An indifference curve shows combinations of two goods that provide the same level of satisfaction to a consumer. It is used in consumer theory, not production.