The production possibilities frontier is

Question

Quizplus · Accepted Answer

The production possibilities frontier is downward sloping because a tradeoff exists between producing one good and another. For example, if a country wants to produce more guns, they must sacrifice producing some butter. The tradeoff between these two goods is what causes the curve to slope downward. Option A and D are incorrect because the production possibilities frontier is not upward sloping and does not reflect unlimited choices. Option C is incorrect because an upward sloping curve would imply that there is a positive relationship between the production of two goods, which is not the case here.

The Production Possibilities Frontier Is