Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)

-Refer to Figure 3-5.The fact that the line slopes downward reflects the fact that
A)for Country A, it is more costly to produce a car than it is to produce a bushel of corn.
B)Country A will produce more cars and fewer bushels of corn as time goes by.
C)Country A faces a tradeoff between producing cars and producing corn.
D)Country A should specialize in producing corn.

Question

Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)
 
-Refer to Figure 3-5.The fact that the line slopes downward reflects the fact that
A)for Country A, it is more costly to produce a car than it is to produce a bushel of corn. 
B)Country A will produce more cars and fewer bushels of corn as time goes by. 
C)Country A faces a tradeoff between producing cars and producing corn. 
D)Country A should specialize in producing corn.

Quizplus · Accepted Answer

The downward slope of the line reflects the fact that Country A faces a tradeoff between producing cars and producing corn. As they produce more cars, they have to give up producing some corn, and vice versa. Therefore, the best choice is C.

Figure 3-5 the Graph Below Represents the Various Combinations of Cars