Which of the following is most appropriately measured along one axis of the production possibilities frontier diagram?
A)the quantity of a produced good
B)the price of a produced good
C)the quantity of natural resources
D)the state of technology
E)society's welfare and satisfaction

Question

Quizplus · Accepted Answer

The production possibilities frontier diagram measures the maximum output of two goods that an economy can produce given its resources and technology. As such, it is most appropriate to measure the quantity of a produced good along one axis of the diagram, as it represents the maximum possible output of that good at any given level of production. The price of a produced good, the quantity of natural resources, the state of technology, and society's welfare and satisfaction are all important factors in determining the production possibilities frontier, but they are not directly measured along the axes of the diagram.

Which of the Following Is Most Appropriately Measured Along One