Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis.As the country moves along the frontier closer to the horizontal axis,
A) more jeans are produced.
B) the country eventually chooses an unattainable point.
C) free lunches occur.
D) more tradeoffs occur.
E) more shoes are produced.

Question

Quizplus · Accepted Answer

As the country moves along the production possibility frontier closer to the horizontal axis, it is allocating more resources to produce shoes, hence more shoes are produced. This movement along the curve illustrates the trade-off between producing one good over another, in this case, choosing to produce more shoes over jeans.

Consider a Production Possibility Frontier with Jeans on the Vertical