A movement from one point on a production possibilities frontier to another represents
A) a tradeoff.
B) a free lunch.
C) full employment of labor but not capital.
D) unemployment.
E) an advance in technology.

Question

Quizplus · Accepted Answer

Moving from one point on a production possibilities frontier to another involves a tradeoff, where more of one good can only be produced by giving up some of another. This is a fundamental concept in economics known as opportunity cost.

A Movement from One Point on a Production Possibilities Frontier