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

Question

Quizplus · Accepted Answer

Moving from one point on the production possibilities frontier to another requires a tradeoff between producing more of one good and producing less of another good. This tradeoff results in an opportunity cost, which is the value of the best alternative foregone. Therefore, the correct choice is D.

Moving from One Point on the Production Possibilities Frontier to Another