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)resources are being used efficiently
D)there is no technological advances occurring

Question

Quizplus · Accepted Answer

In order to have a linear production possibilities frontier, the trade-off between two goods must be constant. This means that for every additional unit of one good produced, an equal and constant amount of the other good must be given up. If the trade-off between two goods is not constant, the production possibilities frontier will be bowed out, indicating increasing opportunity costs. Therefore, choice B is the best answer.

In Order to Have a Linear Production Possibilities Frontier (One