Final answer:
The statement is true as it represents a logical progression of economic concepts from scarcity, leading to decisions on the Production Possibilities Frontier, followed by specialization based on comparative advantage, and ultimately, exchange.
Step-by-step explanation:
The sequence 'Scarcity (Production Possibilities Frontier) -> Choice -> Specialization (Law of Comparative Advantage) -> Exchange' indeed represents a logical progression in economic theory. Scarcity leads to the concept of the Production Possibilities Frontier (PPF), which illustrates the different combinations of goods and services that a society can produce given its limited resources. Choices must be made because resources are scarce, which leads societies to choose between different possible combinations on the PPF.
Once choices are made, societies tend to specialize in the production of goods for which they have a comparative advantage, meaning they can produce a good at a lower opportunity cost compared to others. This specialization allows for the benefits of exchange, where parties trade to obtain goods and services they do not produce themselves. Through exchange, entities can enjoy a greater variety of goods and services than they could if they tried to produce everything on their own.
Thus, the statement is true, as it accurately reflects the chain of economic concepts from scarcity to exchange.