The slope of a production possibility curve represents ________.
A) the total cost of producing a given level of output
B) the opportunity cost of producing one more unit of a good in terms of the forgone production of the other good
C) the rate at which people in an economy would like to trade one good for another
D) combinations of two goods that are not attainable with existing technology

Question

Quizplus · Accepted Answer

The slope of a production possibility curve represents the opportunity cost of producing one more unit of a good in terms of the forgone production of the other good. This is because as an economy produces more of one good, it must give up some production of the other good, and the slope of the curve represents this trade-off.

The Slope of a Production Possibility Curve Represents ________