Which one of the following concepts is illustrated by a production possibilities frontier?
A)profit
B)consumption
C)investment
D)monetary exchange
E)the tradeoff between producing one good versus another

Question

Quizplus · Accepted Answer

A production possibilities frontier illustrates the tradeoff between producing one good versus another, meaning it shows the maximum combinations of goods that can be produced with given resources and technology. The shape of the curve highlights that producing more of one good requires sacrificing the production of some of the other good(s). Therefore, choice E is the only concept that is illustrated by a production possibilities frontier. Choices A, B, C, and D are not related to a production possibilities frontier.

Which One of the Following Concepts Is Illustrated by a Production