Which Statement Describes the Usefulness of the Production Possibilities Frontier

question 11

Multiple Choice

Which statement describes the usefulness of the production possibilities frontier?  

• A) The production possibilities frontier demonstrates that, although resources are scarce for individuals, there is no problem of scarcity for society as a whole. 
• B) The production possibilities frontier is based on unrealistic assumptions and therefore has no value as an economic tool. 
• C) The production possibilities frontier is based on simplifying assumptions, but illustrates scarcity, opportunity cost, and economic growth. 
• D) The production possibilities frontier is based on the assumption that technology is constantly changing.

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Definitions:

Schedule A

A form used to report itemized deductions on the IRS Form 1040, such as medical expenses, taxes paid, and charitable contributions.

Form 1040

The customary form from the IRS used by people to submit their yearly income tax filings.

Itemized Deductions

Deductions allowed on personal income tax returns for specific expenses, as opposed to taking a standard deduction.

Federal Disaster

An event significant in scale and impact, officially declared by the federal government, triggering access to federal funds and resources for recovery.