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If Your Linear, Two-Good Production Possibilities Graph Has a Slope

Question 55

Multiple Choice

If your linear, two-good production possibilities graph has a slope steeper than -1:


A) you would have to give up more than one unit of the good measured on the horizontal axis to gain an additional unit of the good measured on the vertical axis.
B) you would have to give up less than one unit of the good measured on the horizontal axis to gain an additional unit of the good measured on the vertical axis.
C) by specializing in the good measured on the horizontal axis you would be able to make more total units than you would if you specialized in the good measured on the vertical axis.
D) you have a comparative advantage in the good measured on the vertical axis.

Correct Answer:

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