Being on the PPF 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

Quizplus · Accepted Answer

The PPF represents the combination of goods or services that can be produced given the resources and technology available. Any point on the curve indicates the maximum production of one good or service for a given production level of the other good or service. Moving beyond the PPF would require more resources or better technology, while moving inside the curve would result in unused resources or inefficient production. Thus, any increase in the production of one good or service would have to come at the expense of the other good or service, since the resources available are limited.

Being on the PPF Implies That Increasing the Production of One