Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow. Figure 2.1
-The production possibility frontier is used to illustrate the concept of
A) the laissez-faire economy.
B) opportunity costs.
C) equilibrium.
D) aggregate demand.

Question

Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.  Figure 2.1
-The production possibility frontier is used to illustrate the concept of
A) the laissez-faire economy. 
B) opportunity costs. 
C) equilibrium. 
D) aggregate demand.

Quizplus · Accepted Answer

The production possibility frontier (PPF) illustrates the concept of opportunity costs by showing the trade-offs in production levels between two choices, indicating what is given up to produce more of one good.

Refer to the Information Provided in Figure 2