If the production possibilities curve is a straight line:
A)the two products will sell at the same market prices.
B)economic resources are perfectly shiftable between the production of the two products.
C)the two products are equally important to consumers.
D)equal quantities of the two products will be produced at each possible point on the curve.

Question

Quizplus · Accepted Answer

A straight line PPF implies that the opportunity cost of producing one good remains constant as more of it is produced, and the same goes for the other good. This means that resources can be easily shifted back and forth between the two goods without any additional cost.

If the Production Possibilities Curve Is a Straight Line