Use the following to answer question(s):
Exhibit: Sugar and Freight Trains

-(Exhibit: Sugar and Freight Trains) The downward slope of the production possibilities curve implies:
A) resources in the economy are scarce.
B) the economy must be controlled by the government.
C) sugar is more important than freight trains.
D) the economy produces more sugar than freight trains.

Question

Use the following to answer question(s): 
Exhibit: Sugar and Freight Trains
 
-(Exhibit: Sugar and Freight Trains) The downward slope of the production possibilities curve implies:
A) resources in the economy are scarce. 
B) the economy must be controlled by the government. 
C) sugar is more important than freight trains. 
D) the economy produces more sugar than freight trains.

Quizplus · Accepted Answer

The downward slope of the production possibilities curve implies that resources in the economy are scarce, leading to trade-offs between producing different goods. This scarcity requires choices to be made about how to allocate resources most efficiently.

Use the Following to Answer Question(s)