When producing goods and services along a PPF, tradeoffs exist because
A) not all production is efficient.
B) society has only a limited amount of productive resources.
C) buyers and sellers often must negotiate prices.
D) human wants and needs are limited at a particular point in time.

Question

Quizplus · Accepted Answer

Society has only a limited amount of productive resources, which means choices must be made about how to allocate these resources most effectively. This limitation necessitates trade-offs when producing goods and services along the production possibilities frontier (PPF).

When Producing Goods and Services Along a PPF, Tradeoffs Exist