Figure 3-2
Brazil's Production Possibilities Frontier
-Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that
A)for Brazil,it is more costly to produce peanuts than it is to produce cashews.
B)Brazil will produce more peanuts and fewer cashews as time goes by.
C)Brazil faces a tradeoff between producing peanuts and producing cashews.
D)Brazil should specialize in producing cashews.

Question

Figure 3-2
Brazil's Production Possibilities Frontier 
-Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that
A)for Brazil,it is more costly to produce peanuts than it is to produce cashews. 
B)Brazil will produce more peanuts and fewer cashews as time goes by. 
C)Brazil faces a tradeoff between producing peanuts and producing cashews. 
D)Brazil should specialize in producing cashews.

Quizplus · Accepted Answer

The downward slope of the production possibilities frontier reflects the fact that Brazil faces a tradeoff between producing peanuts and producing cashews. This means that in order to produce more of one good, Brazil must produce less of the other due to limited resources and technology. Therefore, choice C is the correct answer. Choices A, B, and D are not supported by the information presented in the graph.

Figure 3-2 Brazil's Production Possibilities Frontier