If there is always a 4-for-1 tradeoff between producing good X and good Y,it follows that the opportunity cost of X (in terms of Y)____________________ and the PPF for these two goods is ______________________.
A) decreases at low levels of X; a straight line
B) rises at high levels of Y; bowed-outward
C) decreases at high levels of X; bowed-outward
D) is always the same; a straight line

Question

Quizplus · Accepted Answer

The 4-for-1 tradeoff indicates a constant opportunity cost, which results in a straight-line production possibilities frontier (PPF).

If There Is Always a 4-For-1 Tradeoff Between Producing Good