The graph shows Brazil's PPF How does the graph illustrate scarcity? If Brazil produces 40 barrels of ethanol a day.how much food must it produce to achieve production efficiency? Brazil's PPF illustrates scarcity because Brazil __ If Brazil produces 40 barrels of ethanol a day, it must produce __ tons of food a day to achieve production efficiency. A. can produce any quantity it wants only if Brazilians are willing to pay enough for the goods produced; 5 B. cannot attain the points outside the PPF:5 C. cannot attain the points outside the PPF:3 D. can produce any quantity it wants only if Brazilians are willing to pay enough for the goods produced; 3

## Step 1<br />The problem involves understanding the concept of scarcity and production efficiency in the context of Brazil's Production Possibility Frontier (PPF). The PPF is a graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.<br /><br />## Step 2<br />Scarcity is a fundamental economic problem that arises due to limited resources. In the context of the PPF, scarcity is illustrated by the fact that Brazil cannot produce more than what is possible on the curve. This means that Brazil cannot attain points outside the PPF, which is option B.<br /><br />## Step 3<br />Production efficiency is achieved when an economy is producing the maximum possible output with the available resources. In this case, if Brazil produces 40 barrels of ethanol a day, it must produce 5 tons of food a day to achieve production efficiency. This is because the PPF shows the trade-off between producing ethanol and food. If Brazil wants to produce more ethanol, it must give up some food production, and vice versa.