Question

In the tradeoff between economic output and environmental protection, what do the combinations on the production possibility curve represent?

Short answer

In the tradeoff between economic output and environmental protection, the combinations on the production possibility curve represent that in order to get one unit of a commodity, we have to sacrifice one unit of the other commodity.

Step-by-step solution

Step 1. Economic output and environmental protection.

Economic output is the total value of goods and services produced in an economy.

Environmental protection is a practice of conserving the natural environment for the benefit of humans and environment.

Step 2. The combinations of the production possibility frontier.

In the tradeoff between economic output and environmental protection, the combinations on the production possibility curve represent that in order to get one unit of a commodity, we have to sacrifice one unit of the other commodity.

In the diagram, the PPF shows the tradeoff between economic output and environmental protection. On point A, we prefer a high level of economic output but the lower level of economic protection and so on.