The production possibilities frontier (PPF) shows us: A. all possible two-good combinations in a...

Question:

The production possibilities frontier (PPF) shows us:

A. all possible two-good combinations in a simple economy.

B. opportunity cost.

C. the trade-offs that a society makes.

D. all of the above

Scarcity

In economics, scarcity refers to the concept of how limited everything is, at least to everything people demand or want. Although the concept of scarcity would still appear to be contestable, we can all agree that natural resources such as oil, silver, gold, or even water are scarce and time, abilities, goods, and services, are scarce. Economics is about trying to consider how individuals or firms make their choices subject to constraints, and these constraints are in some form through a budget, or technology or resources available.

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The answer to this question is option D. all of the above.

The production possibilities frontier (PPF) is a powerful model that shows us the...

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What is the Basic Economic Problem of Scarcity?

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Chapter 1 / Lesson 6
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Learn about scarcity. Understand what scarcity is, review its implications in economics, examine a graph of scarcity, and see some examples of scarcity.


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