The negative slope of the production possibilities frontier represents the idea
A) that free lunches are possible.
B) of tradeoffs, that in order to produce more of one good, the nation must produce less of another.
C) of unemployment.
D) of inefficient production.
E) that prices rise as less is produced.

Question

Quizplus · Accepted Answer

The negative slope of the production possibilities frontier represents the idea of tradeoffs, that in order to produce more of one good, the nation must produce less of another. This is because resources are limited and must be allocated between different uses, and producing more of one good means diverting resources away from producing another good.

The Negative Slope of the Production Possibilities Frontier Represents the Idea