The following figure depicts the production possibilities curve when Ann and Bob engage in trade. With all her resources, Ann can either produce two computer programs or one Web site. With all his resources, Bob can either produce one computer program or three Web sites.

-Refer to the figure above.The steeper portion of this curve has a slope equal to ________.

Question

The following figure depicts the production possibilities curve when Ann and Bob engage in trade. With all her resources, Ann can either produce two computer programs or one Web site. With all his resources, Bob can either produce one computer program or three Web sites.
 
-Refer to the figure above.The steeper portion of this curve has a slope equal to ________.

Quizplus · Accepted Answer

The steeper portion of the curve represents a situation where the opportunity cost of producing one more unit of the good on the x-axis is higher. This is typically represented by the Production Possibility Curve (PPC) of the individual (in this case, Ann) who has a comparative disadvantage in producing that good, hence the steeper slope of Ann's PPC.

The Following Figure Depicts the Production Possibilities Curve When Ann