As we move along the production possibilities frontier,
A) the production of one good increases as the production of the other good decreases.
B) the possibilities of tradeoffs diminish.
C) a tradeoff is not possible because nations need all goods.
D) more of both goods can be produced.
E) less of both goods can be produced.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the trade-offs in production volume between two choices. As production of one good increases, production of the other must decrease to compensate, because resources are limited. This is the concept of opportunity cost.

As We Move Along the Production Possibilities Frontier