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

Question

Quizplus · Accepted Answer

A movement from one point on a production possibilities frontier to another represents a tradeoff. This is because when an economy produces more of one good, it necessarily means producing less of another good. The opportunity cost of producing one good is the quantity of the other good that must be given up. The movement represents the tradeoff between producing more of one good and less of another.

A Movement from One Point on a Production Possibilities Frontier