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

Question

Quizplus · Accepted Answer

The unattainable points outside the boundary demonstrate the concept of scarcity because they represent goods or services that cannot be produced with the given resources and technology. This highlights the idea that there are limited resources available to society and choices must be made about how to allocate those resources.

On a Diagram of a Production Possibilities Boundary, the Concept