In order to have a linear production possibilities frontier (one that is not bowed out), it must be that:
A) there are no trade-offs
B) the trade-off between two goods is constant
C) the trade-off between two goods is increasing
D) the trade-off between two goods is decreasing

Question

Quizplus · Accepted Answer

A linear production possibilities frontier (PPF) implies a constant trade-off between two goods, meaning that for every additional unit of one good produced, the same amount of the other good must be given up. If the trade-off were increasing or decreasing, the PPF would be bowed outwards and not linear. Option A is incorrect because trade-offs always exist in an economy with limited resources.

In Order to Have a Linear Production Possibilities Frontier (One