Question

6. Explain why a movement from a point inside a production possibilities frontier to the production possibilities frontier can be described as a free lunch and a movement along a production possibilities frontier is described as a tradeoff

Answer 1

Answer: Moving down along the PPF will produce more goods but less quality

Explanation:

On the production possibilities frontier, every choice along involves a trade-off, moving down along the PPF, production of capital goods is more but this will result in less quality for to consumers goods, when analysed with the opportunity cost, it is realized that the value of customer good o gone

have to produce less quantity of consumer goods. The opportunity cost of a capital good is the value of consumer good forgone.