The fact that the slope of the production possibilities curve becomes steeper as we move down along the curve indicates that
A) the principle of increasing opportunity costs is relevant.
B) society's resources are limited.
C) the opportunity cost of producing each product is constant.
D) resources are perfectly substitutable between alternative uses.

Question

Quizplus · Accepted Answer

The principle of increasing opportunity costs states that as we produce more and more of one good, we must give up increasing amounts of other goods to do so. This is reflected in the steeper slope of the production possibilities curve as we move down it. Therefore, choice A is the best answer.

The Fact That the Slope of the Production Possibilities Curve