The negative slope of the production possibilities curve is a graphical way of indicating that:
A)any economy "can have its cake and eat it too."
B)to produce more of one product we must accept less of another.
C)the principle of increasing opportunity costs does not apply to the economy as a whole.
D)consumers buy more when prices are low than they do when prices are high.

Question

Quizplus · Accepted Answer

The negative slope of the production possibilities curve indicates that to produce more of one product, we must accept less of another. This is because resources are limited and can only be allocated in a certain way. As we move along the curve, the opportunity cost of producing one good increases, leading to a decrease in the production of another good.

The Negative Slope of the Production Possibilities Curve Is a Graphical