Final answer:
The boundary of all available resources to produce goods and services is called the Production Possibilities Frontier (PPF), related to the concept of scarcity and the circular flow of economic activity.
Step-by-step explanation:
The limit or boundary of all the available resources that can be used to produce the maximum amount of goods and services is called the Production Possibilities Frontier (PPF). This concept is a fundamental one in the field of economics and illustrates the trade-offs involved when choosing to allocate limited resources between different possible goods and services.
For instance, if a society can produce only two goods like healthcare and education, the PPF would show the maximum possible production levels of healthcare for any given level of education production, and vice versa, given the society's resource constraints.
Scarcity is the primary condition driving the concept of the PPF because it highlights the idea that wants exceed what can be produced with all available resources at any given time. The circular flow of economic activity is what generates an economy's wealth, but this economic growth is always limited by physical resources, which can stabilize to a fixed annual amount.