Being on the production possibilities frontier implies that increasing the production of one good or service can only be accomplished by decreasing the quantity produced of another good or service.

Question

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Being on the production possibilities frontier means that all resources are fully utilized, and any increase in the production of one good or service can only occur by decreasing the production of another good or service. This is the trade-off that occurs when an economy is operating at its maximum potential.

Being on the Production Possibilities Frontier Implies That Increasing the Production