The production possibilities frontier is
A) upward sloping and reflects unlimited choices.
B) downward sloping and reflects tradeoffs in choices.
C) downward sloping and reflects unlimited choices.
D) upward sloping and reflects tradeoffs in choices.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is downward sloping, illustrating the trade-offs between two choices, such as the allocation of resources between two goods. As production of one good increases, production of the other must decrease, hence reflecting the trade-offs in choices.

The Production Possibilities Frontier Is