Question 1
On a diagram of a production possibilities boundary, the concept of scarcity is illustrated by the
◦ points on the boundary.
◦ distance from the origin to the boundary.
◦ area within the boundary.
◦ unattainable points outside the boundary.
◦ negative slope of the boundary.
Question 2
On a diagram of a production possibilities boundary, the concept of opportunity cost is illustrated by the
◦ unattainable points outside the boundary.
◦ negative slope of the boundary.
◦ area bounded by the two axes and the boundary.
◦ boundary being concave to the origin.
◦ distance from the origin to the boundary.