The central problem of the economy is the scarcity of resources to satisfy unlimited wants and needs. The production possibilities curve (PPC) is a graphical representation that helps to solve this problem by showing the different combinations of two goods that an economy can produce with its limited resources.

Assumptions of the PPC:

- Resources are fixed in quantity and quality.
- Technology is fixed.
- All resources are fully employed.

The PPC is a bowed-out curve that shows the trade-off between producing two goods. The slope of the curve represents the opportunity cost of producing one good in terms of the other. The points on the curve represent efficient use of resources, where all resources are used to produce goods and services in the most effective way.

Solving the central problem of the economy with PPC:

1. Allocation of resources
The PPC helps to allocate resources efficiently by showing the maximum output that an economy can produce with its limited resources. It helps to identify which combination of goods will produce the highest output.

2. Choice of production method
The PPC helps to choose the most efficient production method by showing the combination of goods that can be produced with the least amount of resources. It helps to identify the most efficient use of resources.

3. Scarcity
The PPC shows the scarcity of resources by showing the trade-off between producing two goods. It helps to identify the opportunity cost of producing one good in terms of the other.

4. Economic growth
The PPC helps to show the possibilities of economic growth by showing the shift of the curve to the right. It shows that an economy can produce more goods and services with the same amount of resources by improving technology, increasing resources, or improving the quality of resources.

Conclusion:
In conclusion, the PPC helps to solve the central problem of the economy by showing the trade-off between producing two goods and the efficient use of resources. It helps to allocate resources, choose the most efficient production method, show the scarcity of resources, and possibilities of economic growth.

PPC refers to the production possibility curve. As we know central problems deals with the production and allocation problems related to the resources so we can infer that it solves the central problems of an economy.
This consits of 3 main economic problems.
1.What to produce?
2.How to produce?
3.For whom to produce?