Which of the following is NOT true of a nation's production-possibility curve?
A)The production-possibility curve shows all combinations of amounts of different products that an economy can produce when its resources are fully employed.
B)Points inside the production-possibility curve are feasible, but may represent unemployment of some of the economy's resources.
C)Points outside the production-possibility curve are not feasible production points given the resources in the economy.
D)The negative slope of the production-possibility curve indicates declining productivity.

Question

Quizplus · Accepted Answer

The negative slope of the production-possibility curve indicates the opportunity cost of producing one good in terms of the other. It does not indicate declining productivity.

Which of the Following Is NOT True of a Nation's