The production possibilities frontier slopes downward and to the right because of limited resources.

Question

Quizplus · Accepted Answer

The production possibilities frontier represents the maximum combinations of two goods that can be produced with a given set of resources. As resources are limited, producing more of one good means sacrificing some of the resources that could have been used to produce the other good. Therefore, the production possibilities frontier slopes downward and to the right, indicating that as we produce more of one good, we have to give up some of the production of the other good.

The Production Possibilities Frontier Slopes Downward and to the Right