If an economy has to sacrifice only one unit of good X for each unit of good Y produced throughout the relevant range, then its production possibility frontier has:
A)a zero slope.
B)a constant negative slope.
C)an increasing negative slope.
D)a decreasing negative slope.

Question

Quizplus · Accepted Answer

The production possibility frontier (PPF) has a constant negative slope when the opportunity cost of producing one good in terms of the other is constant. In this case, sacrificing one unit of good X for each unit of good Y indicates a constant opportunity cost, resulting in a straight line with a constant negative slope.

If an Economy Has to Sacrifice Only One Unit of Good