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Ketones are produced by the liver when:

  1. Excess carbohydrates are consumed

  2. Fats are broken down

  3. Protein is synthesized

  4. Blood sugar levels are high

The correct answer is: Fats are broken down

Ketone production by the liver primarily occurs during the breakdown of fats, specifically when the body is in a state of fasting, prolonged exercise, or carbohydrate-restricted diets. When glucose levels are low, the liver converts fatty acids into ketone bodies, which serve as an alternative energy source for the brain and other tissues that can utilize ketones instead of glucose. The liver’s ability to produce ketones is a key part of the metabolic process, particularly when the body's glycogen stores have been depleted and there is insufficient availability of glucose. This process, known as ketogenesis, helps to maintain energy levels when carbohydrate intake is low. In contrast, the other options involve metabolic states that do not lead to ketone production or are associated with the availability of glucose and insulin, which hinder the need for alternative energy sources like ketones.