The slope of the production possibilities curve must be
A) constant.
B) positive.
C) decreasing.
D) increasing.
E) negativE.

Question

Quizplus · Accepted Answer

The slope of the production possibilities curve represents the opportunity cost of producing one good in terms of the other. Since resources are not equally efficient in producing both goods, the opportunity cost increases as more of a good is produced. This results in a downward-sloping curve, indicating a negative slope.

The Slope of the Production Possibilities Curve Must Be