Frequently Asked Questions - Production Possibility Frontier
FAQs -
Production Possibility Frontier
The answer must include the following:
Definition of opportunity cost: the (next) best alternative foregone as a result of making a decision
Diagram of production possibility curve – axes correctly labelled and curve correct shape (bowed out or straight downward sloping)
Explanation – idea of moving along one axis has the effect of a reverse movement along the other axis
