Production possibility curve refers to :

Optimum utilization of given resources of production

The correct answer is option (1) : Optimum utilization of given resources of production

The production possibility curve (PPC) indeed represents the different combinations of goods and services that an economy can produce with its given resources and technology. It shows the maximum output possibilities for two goods or services under the assumption that all resources are fully and efficiently utilized. This option correctly captures the essence of the PPC, which is to illustrate how an economy can efficiently allocate its resources to achieve the maximum possible output combinations.