The negative slope of the production possibilities frontier represents the idea
A) of tradeoffs, that, in order to produce more of one good, the nation must produce less of another.
B) that prices rise as less is produced.
C) of unemployment.
D) of inefficient production.
E) that free lunches are possible.

Question

Quizplus · Accepted Answer

The negative slope of the production possibilities frontier represents the idea of tradeoffs, that, in order to produce more of one good, the nation must produce less of another. The opportunity cost of producing more of one good is the loss of production of the other good. This is illustrated by the downward slope of the production possibilities frontier.

The Negative Slope of the Production Possibilities Frontier Represents the Idea