Use the figure below to answer the following questions. Figure 2.1.6
-Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food.This PPF ________ illustrate scarcity because ________.
A)does;the firm cannot produce points outside the frontier,and as the firm moves along the PPF,it cannot produce more dog biscuits without producing less cat food
B)does not;the firm can produce any quantity it wants if it is willing to charge a high enough price
C)does not;the PPF is downward sloping
D)does;as more is produced,consumers must pay a higher price
E)does not;scarcity does not occur in the market for pet food

Question

Use the figure below to answer the following questions.  Figure 2.1.6
-Figure 2.1.6 shows the production possibilities frontier for a firm that produces pet food.This PPF ________ illustrate scarcity because ________.
A)does;the firm cannot produce points outside the frontier,and as the firm moves along the PPF,it cannot produce more dog biscuits without producing less cat food 
B)does not;the firm can produce any quantity it wants if it is willing to charge a high enough price 
C)does not;the PPF is downward sloping 
D)does;as more is produced,consumers must pay a higher price 
E)does not;scarcity does not occur in the market for pet food

Quizplus · Accepted Answer

The PPF in Figure 2.1.6 illustrates scarcity because it shows the trade-off between producing different types of pet food. The firm cannot produce at points outside the frontier, which indicates limited resources, and as it moves along the PPF, it must give up some of one type of pet food to produce more of another type. This demonstrates that the firm is facing scarcity and must make choices about how best to allocate its resources. Choice B is incorrect because it assumes that the firm can produce any quantity it wants regardless of its resources, which is not the case. Choice C is incorrect because the fact that the PPF is downward sloping is a consequence of scarcity rather than evidence that scarcity does not exist. Choice D is incorrect because it describes how prices might change as more is produced, but it does not address the fundamental concept of scarcity. Choice E is incorrect because scarcity exists in all markets, including the market for pet food.

Use the Figure Below to Answer the Following Questions