The production possibilities frontier provides an illustration of the principle that

A) trade can make everyone better off.
B) governments can sometimes improve market outcomes.
C) people face trade-offs.
D) people respond to incentives.

Question

Mary Aime Montederamos · Accepted Answer

Final Answer : C, Explanation :  The production possibilities frontier (PPF) illustrates the trade-offs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for any given production level of the other. This concept directly reflects the principle that people (and economies) face trade-offs in the allocation of their resources.

The production possibilities frontier provides an illustration of the principle that

A) trade can make everyone better off.
B) governments can sometimes improve market outcomes.
C) people face trade-offs.
D) people respond to incentives.

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Learning Objectives

Related questions

The production possibilities frontier provides an illustration of the principle thatA) trade can make everyone better off.B) governments can sometimes improve market outcomes.C) people face trade-offs.D) people respond to incentives.

Definitions

Learning Objectives

Learning Objectives

Related questions

The production possibilities frontier provides an illustration of the principle that

A) trade can make everyone better off.
B) governments can sometimes improve market outcomes.
C) people face trade-offs.
D) people respond to incentives.