The existence of the tradeoff along the PPF means that the PPF is
A) linear.
B) positively sloped
C) negatively sloped.
D) bowed outward.

Question

Quizplus · Accepted Answer

The tradeoff between two goods along the PPF implies that producing more of one good requires giving up some amount of the other good. A negative slope on the PPF illustrates this tradeoff, as the opportunity cost of producing more of one good increases as we move along the PPF. Therefore, the correct choice is C, negatively sloped.

The Existence of the Tradeoff Along the PPF Means That