A normal production possibilities frontier has a
A)positive slope and is steeper near the horizontal axis than near the vertical axis.
B)negative slope and is steeper near the horizontal axis than near the vertical axis.
C)positive slope and is steeper near the vertical axis than near the horizontal axis.
D)negative slope and is steeper near the vertical axis than near the horizontal axis.
E)zero slope, and it does not touch the horizontal axis.

Question

Quizplus · Accepted Answer

A normal production possibilities frontier (PPF) illustrates the trade-offs between two choices, showing the maximum possible output levels for two goods or services that an economy can achieve when all resources are fully and efficiently utilized. It has a negative slope because producing more of one good requires producing less of the other. The PPF is typically concave to the origin, meaning it is steeper near the horizontal axis and less steep near the vertical axis, reflecting increasing opportunity costs.

A Normal Production Possibilities Frontier Has a