Which of the following trade-offs does the production possibilities frontier illustrate?

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The production possibilities frontier (PPF) shows the maximum possible combination of two goods that an economy can produce with its limited resources and technology. It illustrates the trade-off between producing one good and producing another. Once an economy has reached the efficient points on its PPF, it cannot produce more of one good without sacrificing the production of the other. This trade-off is reflected in the concave shape of the PPF. Option A is incorrect because the PPF does not necessarily imply a trade-off between efficiency and equality. Option C is incorrect because the PPF does not require an economy to give up one good entirely in order to consume more of the other. Option D is incorrect because the PPF does not show a trade-off between producing and consuming goods and environmental quality.

Which of the Following Trade-Offs Does the Production Possibilities Frontier