Which statement best describes the economic principles associated with a straight-line production possibilities frontier?

Question

Quizplus · Accepted Answer

A straight-line production possibilities frontier implies that the opportunity cost of producing one good in term of the other is constant. This means that resources are being used in the most efficient manner possible, given the available technology. However, this does not suggest that the problem of scarcity does not exist or that technology is rapidly expanding. The fact that the resources are imperfect substitutes can lead to a curved production possibilities frontier, not a straight line.

Which Statement Best Describes the Economic Principles Associated with a Straight-Line