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The model used to show the constraints a whole society faces is the:
ASupply and demand curve
BCircular flow diagram
CPossibilities frontier
DBudget constraint line
Answer & Solution
Correct answer: C. Possibilities frontier
1. An individual and a society both face limits, described by different models.
2. The constraints society faces are explained using a model called the production possibilities frontier.
3. It shows the combinations of goods a society can produce with its resources.
4. A budget constraint does the same job for a single consumer.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 2 'Choice in a World of Scarcity', sections 2.1-2.3_
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