Final answer:
True, the Production Possibilities Frontier (PPF) can explain scarcity, choice, opportunity cost, economic growth, and efficiency. The PPF demonstrates the trade-offs between different production choices given limited resources and signifies economic growth by shifting outward when resources or technology improve.
Step-by-step explanation:
The statement that the Production Possibilities Frontier (PPF) can be used to explain scarcity, choice, opportunity cost, economic growth, and efficiency is True. The PPF is a diagram that illustrates the maximum feasible quantities of two goods or services that an economy can produce with its available resources and technology, showing the trade-offs between the choices of production.
Scarcity is represented by the PPF since it shows the limits of production given finite resources. Each point on the PPF represents a choice of how to allocate resources between the two goods, demonstrating the concept of choice. The slope of the PPF represents opportunity cost which is the cost of foregoing the next best alternative when making a decision. Economic growth is shown by an outward shift in the PPF, which can result from an increase in resources, an improvement in technology, or finding more efficient production methods. Finally, efficiency is illustrated by the PPF through two types: productive efficiency (points on the PPF curve) and allocative efficiency (the most preferred point on the PPF curve by society).