Final answer:
The production possibilities frontier illustrates the concept of scarcity by showing the limit on the quantities of goods and services that can be produced due to limited resources. It represents the tradeoffs a society has to make when allocating resources to different goods or services. By illustrating the scarcity of resources, the production possibilities frontier highlights the need for societies to make choices about what to produce and how to allocate resources efficiently.
Step-by-step explanation:
The production possibilities frontier illustrates the concept of scarcity by showing the limit on the quantities of goods and services that can be produced due to limited resources. It represents the tradeoffs a society has to make when allocating resources to different goods or services. For example, if a society wants to produce more healthcare, it will have to allocate fewer resources to education.
The production possibilities frontier in Figure 2.3 demonstrates this concept by showing different combinations of healthcare and education that a society can produce given its limited resources. Any point outside the frontier is unattainable, while any point inside the frontier represents underutilization of resources.
By illustrating the scarcity of resources, the production possibilities frontier highlights the need for societies to make choices about what to produce and how to allocate resources efficiently.