If a production possibilities frontier is a downward sloping straight line, it
A)shows that there are no trade-offs in the production process.
B)shows that resources are not efficiently allocated
C)shows that production on the frontier implies that it is not possible to produce more of anything without producing less of something else.
D)shows that resources are unemployed.

Question

Quizplus · Accepted Answer

A downward sloping straight line on a production possibilities frontier indicates that there is a constant opportunity cost between the production of two goods. This means that in order to produce more of one good, the economy must produce less of the other good. Thus, production on the frontier implies that it is not possible to produce more of anything without producing less of something else.

If a Production Possibilities Frontier Is a Downward Sloping Straight