Which of the following is most appropriately measured along one axis of the production possibilities frontier diagram?

Question

Quizplus · Accepted Answer

The production possibilities frontier diagram is a graphical representation of all possible combinations of two products that can be produced using all available resources and technology. One axis of the diagram usually represents the quantity of one product produced while the other axis represents the quantity of the other product produced. Hence, the most appropriate variable to be measured along one axis of the diagram is the quantity of a produced good, which is represented by the movement along the axis. The price of a produced good is not a variable that can be directly measured in the diagram since it is determined by the interaction of demand and supply in the market. The quantity of natural resources and the state of technology are used to determine the production possibilities frontier itself and cannot be directly measured along one of the axes.

Which of the Following Is Most Appropriately Measured Along One