Moving from one point on the production possibilities frontier to another _ .
A) involves a tradeoff and incurs an opportunity cost
B) involves no tradeoff but it does incur an opportunity cost
C) involves an opportunity cost but no tradeoff
D) involves a tradeoff but does not incur an opportunity cost

Question

Quizplus · Accepted Answer

Moving from one point on the production possibilities frontier to another involves a tradeoff because resources are limited, and producing more of one good or service means producing less of another. It also incurs an opportunity cost because the production of one good or service implies giving up the opportunity to produce another.

Moving from One Point on the Production Possibilities Frontier to Another