Asked by Cassandra Myers on Jun 24, 2024
Verified
Which of the following is not demonstrated by a production possibility curve?
A) Scarcity
B) Opportunity cost
C) Necessity for choice due to scarcity
D) Price
Production Possibility Curve
A graphical representation showing the maximum combination of goods and services that can be produced in a given period with available resources.
Opportunity Cost
The expense incurred by not choosing the second-best option when making a decision.
Scarcity
The basic economic issue arises from endless human desires and needs in a context of scarce resources.
- Determine the economic factors causing scarcity and the economic dilemma.
- Comprehend the principle and importance of the production possibilities frontier (PPF).
- Recognize the dynamics of resources in economic growth and the role of opportunity cost.
Verified Answer
AS
Anis Sofea RosliJun 27, 2024
Final Answer :
D
Explanation :
A production possibility curve shows the trade-offs between producing two different goods with a limited amount of resources, and thus demonstrates scarcity, opportunity cost, and the necessity for choice. However, it does not demonstrate price, as price is determined in the market by supply and demand factors.
Learning Objectives
- Determine the economic factors causing scarcity and the economic dilemma.
- Comprehend the principle and importance of the production possibilities frontier (PPF).
- Recognize the dynamics of resources in economic growth and the role of opportunity cost.