Asked by Riley Lennon on Jun 12, 2024
Verified
The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.
Production Possibilities Frontier
A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between different choices in the allocation of resources.
Opportunity Cost
Giving up possible gains from several options by choosing a particular one.
- Gain an understanding of the idea of opportunity cost and its role in economic choice-making.
- Learn how the production possibilities frontier (PPF) explains the concepts of efficiency, trade-offs, and opportunity costs.
Verified Answer
MS
Meline SabatiniJun 17, 2024
Final Answer :
True
Explanation :
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.
Learning Objectives
- Gain an understanding of the idea of opportunity cost and its role in economic choice-making.
- Learn how the production possibilities frontier (PPF) explains the concepts of efficiency, trade-offs, and opportunity costs.
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