Which statement describes the usefulness of the production possibilities frontier?

Question

Quizplus · Accepted Answer

The production possibilities frontier is a useful tool in economics because it demonstrates important concepts such as scarcity, opportunity cost, and economic growth, even though it is based on simplifying assumptions. It does not claim that resources are not scarce, so option A is incorrect. Option B is also incorrect as the production possibilities frontier is not entirely based on unrealistic assumptions, but rather, idealizations of economic systems. Option D is incorrect because the production possibilities frontier does not assume that technology is constantly changing.

Which Statement Describes the Usefulness of the Production Possibilities Frontier