How does the production possibilities frontier show that every choice involves a tradeoff?
What will be an ideal response?
Movements along the PPF frontier illustrate that producing more of one good requires producing less of other good. This observation reflects the result that a tradeoff must be made when producing output efficiently.
You might also like to view...
The monetary policy strategy that does NOT allow the policy to focus on domestic considerations is
A) exchange-rate targeting. B) monetary targeting. C) inflation targeting. D) the implicit nominal anchor.
In the opening of free trade, if world prices of a good are less than domestic prices of that same good,
a. domestic consumers will experience a loss of surplus. b. domestic prices will drop to the world price level. c. all domestic producers of that good will try to find another market because they can't compete with foreign producers. d. domestic producers will increase the quantity supplied in order to crowd out the foreign-produced good.