If there is always a three-for-one trade-off between the production of goods X and Y,then the production possibilities boundary for X and Y is
A)a downward-sloping curve convex to the origin.
B)semicircular.
C)a downward-sloping straight line.
D)a downward-sloping straight line that is broken at one point.
E)a downward-sloping curve concave to the origin.

Question

Quizplus · Accepted Answer

A three-for-one trade-off means that for every unit of X produced, three units of Y must be given up. This creates a constant rate of opportunity cost, resulting in a straight line production possibilities boundary.

If There Is Always a Three-For-One Trade-Off Between the Production