The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

Name: The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.
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Question

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The production possibilities frontier (PPF) illustrates the maximum amount of two goods that can be produced with a given set of resources, and the slope of the PPF shows the opportunity cost of one good in terms of the other.

The Production Possibilities Frontier Shows the Opportunity Cost of One