Suppose Oklahoma decides to produce only two goods,oil and football helmets.If Oklahoma is producing on its production possibility frontier,as oil production increases,the production of football helmets will:
A)increase.
B)not change.
C)decrease at a necessarily decreasing rate.
D)decrease at some rate.

Question

Quizplus · Accepted Answer

When Oklahoma is producing on its production possibility frontier (PPF) and decides to increase oil production, it must reallocate resources from producing football helmets to oil production. This trade-off results in a decrease in the production of football helmets. The rate of decrease can vary, but it is not specified as necessarily decreasing, hence the correct answer is that it will decrease at some rate.

Suppose Oklahoma Decides to Produce Only Two Goods,oil and Football