Opportunity cost is expressed in a production possibilities frontier (PPF) by a movement
A) from the region within the PPF to a point on the PPF.
B) from the region outside of the PPF to a point on the PPF.
C) from the region within the PPF to the region outside of the PPF.
D) along the PPF where to gain more of one good it is necessary to give some of another good.

Question

Quizplus · Accepted Answer

Opportunity cost is the trade-off between two goods when one good is replaced with the other. This is represented in a PPF as a movement along the curve where producing more of one good requires sacrificing some of the other. Therefore, the correct choice is D.

Opportunity Cost Is Expressed in a Production Possibilities Frontier (PPF)