Which of the following concepts is illustrated by a production possibilities model?
A) Scarcity.
B) Tradeoffs.
C) Opportunity cost.
D) All of the above.

Question

Quizplus · Accepted Answer

The production possibilities model illustrates all of these concepts: scarcity (limited resources), tradeoffs (choosing between different combinations of goods), and opportunity cost (the cost of forgoing the next best alternative when making a decision).

Which of the Following Concepts Is Illustrated by a Production