On a Diagram of a Production Possibilities Boundary,the Concept of Scarcity

question 109

Multiple Choice

On a diagram of a production possibilities boundary,the concept of scarcity is illustrated by the

• A)points on the boundary.
• B)area within the boundary.
• C)distance from the origin to the boundary.
• D)negative slope of the boundary.
• E)unattainable points outside the boundary.

---

Definitions:

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Productivity

A measure of the efficiency of production that is often quantified as the ratio of output to inputs used in the production process, such as labor and capital.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate in relation to each other.

Labor Productivity

Output per unit of labor; measured as real GDP divided by the hours of labor employed to produce that output.