Question

1. the production possibilities curve or frontier illustrates both the economic concepts of scarcity and opportunity cost.

true
false

Explanation:

The Production Possibilities Curve (PPC) shows the maximum combinations of two goods an economy can produce with limited resources, demonstrating scarcity (points beyond the curve are unattainable due to limited resources). The downward slope of the PPC reflects opportunity cost: producing more of one good requires giving up units of the other.

Answer:

True