If there is always a three- for- one trade- off between the production of goods X and Y, then the production possibilities boundary for X and Y is
A)a downward- sloping straight line.
B)a downward- sloping curve convex to the origin.
C)a downward- sloping curve concave to the origin.
D)semi- circular.
E)a downward- sloping straight line that is broken at one point.

Question

Quizplus · Accepted Answer

A three-for-one trade-off indicates a constant opportunity cost, which results in a linear production possibilities boundary.

If There Is Always a Three- For- One Trade- Off