A production possibilities curve is negatively sloped because:

Question

Quizplus · Accepted Answer

The production possibilities curve represents the maximum combinations of two goods that an economy can produce with its given resources and technology. The negative slope of the curve shows that in order to produce more of one good, the production of the other good must be decreased. This is because the resources used to produce one good cannot be used to produce the other. Therefore, the choice D is the most appropriate. Choices A and B are incorrect statements, and C is not true because adjustments in production decisions can be made along the curve, but the trade-offs must still be considered.

A Production Possibilities Curve Is Negatively Sloped Because