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

Question

Quizplus · Accepted Answer

Moving along the production possibilities frontier involves reallocating resources from the production of one good to another, which incurs an opportunity cost and involves a tradeoff between the two goods.

Moving from One Point on the Production Possibilities Frontier to Another