If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out.
B) be a loop.
C) be a straight line.
D) not exist.

Question

Quizplus · Accepted Answer

If all resources were perfectly adaptable for alternative uses, there would be no opportunity cost, meaning that any combination of goods and services could be produced with the same level of efficiency. Therefore, the production possibilities curve would be a straight line, indicating that resources can be easily reallocated without any negative impact on production.

If All Resources Were Perfectly Adaptable for Alternative Uses, the Production