Question

The production possibilities frontier provides an illustration of the principle that a. people respond to incentives. b. trade can make everyone better off. c. governments can sometimes improve market outcomes. d. people face trade-offs.

Answer 1

Answer:

d. people face trade-offs.

Explanation:

The production possibility frontier shows all the combinations of two goods an economy can produce when all its resocurces are fully employed.

At one extreme of the curve, the highest possible amount of one good is produced while zero quantity of the second good is produced . To produce more quantity of the second good, one has to produce less quantity of the first good. This illustrates trade off.

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