The production possibilities frontier is a downward-sloping straight line when
A)it is possible to switch between one good and the other good at a constant rate.
B)there is no tradeoff involved in switching between one good and the other good.
C)the same amount of time is required to produce a unit of one good as is required to produce a unit of the other good.
D)the person for whom the frontier is drawn wishes to consume equal amounts of the two goods.

Question

Quizplus · Accepted Answer

A downward-sloping straight line on a production possibilities frontier indicates that there is a constant opportunity cost between producing one good and another. This means that for every unit of one good produced, a constant amount of the other good must be given up. This is only possible if the two goods can be switched between each other at a constant rate, which is the case in choice A.

The Production Possibilities Frontier Is a Downward-Sloping Straight Line When