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 shiftable between alternative uses.

Question

Quizplus · Accepted Answer

The principle of increasing opportunity costs states that as we produce more of one good, the opportunity cost of producing that good increases as resources are shifted away from producing the other good. This leads to a steeper slope of the production possibilities curve, which is evident as we move down along the curve.

The Fact That the Slope of the Production Possibilities Curve