A production possibility frontier that is a straight line sloping down from left to right would suggest that:
A)more of both goods could be produced moving along the
B)frontier.the two products must have the same price.
C)the opportunity costs of the products are constant.
D)there are no opportunity costs.

Question

Quizplus · Accepted Answer

A straight line sloping down from left to right suggests that the opportunity costs of the two products are constant. This means that as the production of one good increases, an equal amount of the other good must be given up. For example, if a country produces more cars, it must forego the production of a certain amount of refrigerators, and vice versa. The fact that the PPF is a straight line means that the opportunity cost of producing one good in terms of the other remains constant at all levels of production.

A Production Possibility Frontier That Is a Straight Line Sloping