The statement "Production possibility curve does not explain the opportunity cost of production of x for y" is not correct because the production possibility curve (PPC) is specifically designed to illustrate and explain the concept of opportunity cost in production.

 Here's the reason why:

1. Production Possibility Curve and Opportunity Cost: The production possibility curve is a graphical representation that shows the various combinations of two goods that an economy can produce given its available resources and technology. It illustrates the trade-off between producing one good (e.g., X) and the other good (e.g., Y).

2. Slope of the PPC: The slope of the PPC represents the opportunity cost of producing one good in terms of the other. In other words, it shows how much of one good must be sacrificed to produce an additional unit of the other good.

3. Negative Slope: The PPC typically slopes downward from left to right, indicating that as more of one good is produced, less of the other good can be produced. This reflects the idea of scarcity and the need to make choices in allocating resources.

4. Illustration of Trade-offs: By analyzing points along the PPC, one can see the concept of trade-offs and how resources can be reallocated to produce different combinations of goods. This directly demonstrates the opportunity cost of production.

So, the statement in option (1) is not correct because the PPC is a fundamental tool in economics for understanding and visualizing opportunity costs in production decisions.