-The figure above shows a production possibilities frontier.In the figure,the economy faces a tradeoff when ________ cell phones and ________ DVDs.are produced.
A) 3 million; 9 million
B) 2 million; 9 million
C) 3 million; 8 million
D) 4.5 million; no
E) 5 million; 15 million

Question

-The figure above shows a production possibilities frontier.In the figure,the economy faces a tradeoff when ________ cell phones and ________ DVDs.are produced.
A) 3 million; 9 million 
B) 2 million; 9 million 
C) 3 million; 8 million 
D) 4.5 million; no 
E) 5 million; 15 million

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the trade-offs an economy faces in the production of two goods. Points on the PPF (like A) represent efficient production levels where the economy is maximizing its production capabilities. Moving from one point to another on the PPF involves a trade-off, as producing more of one good requires producing less of the other.

-The Figure Above Shows a Production Possibilities Frontier