Question

The slope of the production possibility frontier is determined by the _________ of expanding production of one good, measured by how much of the other good would be lost.

a) Opportunity cost
b) Marginal cost
c) Average cost
d) Fixed cost

Answer 1

The slope of the production possibility frontier is determined by the opportunity cost of expanding production of one good.

Step-by-step explanation:

The slope of the production possibility frontier is determined by the opportunity cost of expanding production of one good, measured by how much of the other good would be lost. The opportunity cost is the amount of the good on the vertical axis that must be given up in order to free up the resources required to produce one more unit of the good on the horizontal axis.