If the production possibilities curve is a straight line,
A)opportunity costs rise as output of either commodity is expanded.
B)resources are not equally productive in the production of both goods.
C)opportunity costs are negative.
D)resources can be moved from the production of one good to production of others with no loss of productivity.

Question

Quizplus · Accepted Answer

When the production possibilities curve is a straight line, it indicates constant opportunity costs, meaning resources can be reallocated between the production of two goods without any loss in productivity. This is because the resources are perfectly adaptable for the production of either good.

If the Production Possibilities Curve Is a Straight Line