The slope of the production possibilities frontier equals the __________________ of producing one more unit of the good measured on the x-axis.

Question

Quizplus · Accepted Answer

The slope of the production possibilities frontier represents the opportunity cost of producing one more unit of the good measured on the x-axis. Opportunity cost is the cost of giving up the production of one good in order to produce another good, and it is measured by the amount of the second good forgone. Therefore, the correct answer is A) Opportunity cost.

The Slope of the Production Possibilities Frontier Equals the __________________