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If the Production Possibilities Curve Is a Straight Line, What

Question 36

Multiple Choice

If the production possibilities curve is a straight line, what does this illustrate?


A) Resources are not equally substitutable between productions of the goods because there is an increase in opportunity cost.
B) As an increasing quantity of resources is shifted from one manufacturing process to another, there is no increase in opportunity cost.
C) Opportunity costs are negative.
D) Opportunity costs increase as output of either commodity is expanded.

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