The slope of the production possibilities frontier at a pointindicates ________.

Question

Quizplus · Accepted Answer

The slope of a PPF (production possibilities frontier) represents the opportunity cost of producing one good in terms of the other. Therefore, the correct answer is C, which states that the slope of a PPF indicates a country's opportunity cost of production. The other choices are incorrect because A refers to preferences, B refers to gains from trade, and D refers to trade balance, which are not directly related to the slope of a PPF.

The Slope of the Production Possibilities Frontier at a Pointindicates