The slope of the production possibilities frontier curve indicates
A)opportunity cost.
B)comparative advantage.
C)absolute advantage.
D)marginal benefit.
E)preferences.

Question

Quizplus · Accepted Answer

The slope of the production possibilities frontier curve illustrates the opportunity cost of producing one good in terms of the other. As the production of one good increases, the opportunity cost of producing an additional unit of that good in terms of the other good also increases.

The Slope of the Production Possibilities Frontier Curve Indicates