If a country's production possibilities boundary is drawn as a straight (downward- sloping)line it indicates
A)the use of the scarce resources in an economy.
B)increasing opportunity cost of producing more of either good.
C)decreasing opportunity cost of producing more of either good.
D)an unfair distribution of resources in an economy.
E)constant opportunity cost of producing more of either good.

Question

Quizplus · Accepted Answer

A straight (downward-sloping) production possibilities boundary indicates constant opportunity costs, meaning that the trade-off between the two goods remains consistent as production shifts from one good to another.

If a Country's Production Possibilities Boundary Is Drawn as a Straight