The PPF between goods X and Y will be a downward-sloping
A) straight line if increasing opportunity costs exist.
B) straight line if decreasing opportunity costs exist.
C) curve that is bowed inward if increasing opportunity costs exist.
D) straight line if constant opportunity costs exist.

Question

Quizplus · Accepted Answer

A PPF will be a straight line if the opportunity cost of producing one good in terms of the other remains constant. This means that the resources used to produce the two goods are equally efficient in producing both goods, leading to a constant slope.

The PPF Between Goods X and Y Will Be a Downward-Sloping