As we move from one efficient point on the production possibilities frontier (PPF)to another efficient point on the PPF,we experience
A) decreasing relative cost.
B) opportunity cost.
C) macroeconomics.
D) unlimited resources.
E) unattainable combinations.

Question

Quizplus · Accepted Answer

Moving from one efficient point on the PPF to another efficient point involves making a trade-off between producing one good over the other. This trade-off is known as opportunity cost. Therefore, option B is the correct answer. Options A, C, D, and E are incorrect as decreasing relative cost, macroeconomics, unlimited resources, and unattainable combinations do not accurately describe the process of moving from one efficient point to another on the PPF.

As We Move from One Efficient Point on the Production