Which of the following trade-offs does the production possibilities frontier illustrate?
A)If an economy wants to increase efficiency in production,then it must sacrifice equality in consumption.
B)Once an economy has reached the efficient points on its production possibilities frontier,the only way of getting more of one good is to get less of the other.
C)For an economy to consume more of one good,it must stop consuming the other good entirely.
D)For an economy to produce and consume goods,it must sacrifice environmental quality.

Question

Quizplus · Accepted Answer

The production possibilities frontier illustrates the trade-off of producing one good over another. Once an economy has reached the efficient points on its production possibilities frontier, the only way to produce more of one good is to produce less of the other. The other choices are not accurate descriptions of the trade-offs illustrated by the production possibilities frontier.

Which of the Following Trade-Offs Does the Production Possibilities Frontier