A country's production possibilities frontier will be a straight line if Group of answer choices the economy is producing efficiently. increasing the production of one good by x units entails no opportunity cost in terms of the other good. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. the economy is engaged in trade with at least one other economy.
A country's production possibilities frontier will be a straight line if Group of answer choices the economy is producing efficiently. increasing the production of one good by x units entails no opportunity cost in terms of the other good. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. the economy is engaged in trade with at least one other economy.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A country's production possibilities frontier will be a straight line if
Group of answer choices
the economy is producing efficiently.
increasing the production of one good by x units entails no opportunity cost in terms of the other good.
increasing the production of one good by x units entails a constant opportunity cost in terms of the other good.
the economy is engaged in trade with at least one other economy.
Expert Solution
Step 1
Within the function, consumer PPC is limited and constrained. It illustrates a tradeoff between consuming or producing one good over the other. It means that more of one thing can be produced or consumed only if other ones are sacrificed. The 'opportunity cost' of the constraint is represented graphically by the slope of the PPC.
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