If a country has a straight (downward sloping)production possibilities frontier,then production is said to be subject to
A)constant opportunity costs.
B)decreasing opportunity costs.
C)first increasing and then decreasing opportunity costs.
D)increasing opportunity costs.

Question

Quizplus · Accepted Answer

A straight (downward sloping) production possibilities frontier indicates that the opportunity cost of producing one good in terms of another is constant. This means that the amount of one good that must be given up to produce an additional unit of another good remains the same, regardless of the production levels.

If a Country Has a Straight (Downward Sloping)production Possibilities Frontier,then