If an economy is operating on its production possibilities.....?

Question

frontier, it must produce less of one good if it produces more of another.

a. True
b. False



a. True b. False

Answer 1

It is true under the following basic microeconomic assumption: the monotonicity (and specifically, a negative slope)of the Production Possibility Frontier.

This monotonicity implies that there is always means that there is a inverse relation between the amount produces of each of the two goods.

Answer 2

true because of increasing oppurtunity costs