The negative slope of the production possibilities frontier represents the idea
A)that prices rise as less is produced.
B)of tradeoffs,that,in order to produce more of one good,the nation must produce less of another.
C)that free lunches are possible.
D)of unemployment.
E)of inefficient production.

Question

Quizplus · Accepted Answer

The negative slope of the production possibilities frontier indicates the concept of tradeoffs, which means when a country wants to produce more of one good, it needs to give up a certain amount of production of another good. This is because the resources required to produce each good are limited and cannot be used to produce other goods at the same time.

The Negative Slope of the Production Possibilities Frontier Represents the Idea