As we move along the production possibilities frontier,
A) the possibility of tradeoffs diminishes.
B) a tradeoff is not possible because nations need all goods.
C) the production of one good increases as the production of the other good decreases.
D) less of both goods can be produced.
E) more of both goods can be produced.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the trade-offs between two goods. As production shifts from one good to another along the PPF, the quantity produced of one good increases while the quantity of the other decreases, demonstrating the concept of opportunity cost.

As We Move Along the Production Possibilities Frontier