On a diagram of a production possibilities boundary,the concept of scarcity is illustrated by the
A)points on the boundary.
B)area within the boundary.
C)distance from the origin to the boundary.
D)negative slope of the boundary.
E)unattainable points outside the boundary.

Question

Quizplus · Accepted Answer

The production possibilities boundary represents the maximum combination of two goods that can be produced given the resources and technology available. The points outside the boundary are unattainable because they represent combinations of goods that require more resources than are available, highlighting the concept of scarcity.

On a Diagram of a Production Possibilities Boundary,the Concept of Scarcity