The equation for Cartman's production possibilities curve is A = 13 - 0.5B,where A and B are the only two goods he can produce.The slope of Cartman's production possibilities curve is __________ and quantifies __________.
A) - 0.5;the change in A for a one-unit change in B
B) 0.5;the change in A for a one-unit change in B
C) - 0.5;the change in B for a one-unit change in A
D) 0.5;the change in B for a one-unit change in A
E) - 2;the change in A for a one-unit change in B

Question

Quizplus · Accepted Answer

The slope of the production possibilities curve is calculated by taking the change in A (the vertical axis) divided by the change in B (the horizontal axis). In this case, the slope is -0.5, which means that for a one-unit increase in B, A decreases by 0.5. Therefore, the best choice is A.

The Equation for Cartman's Production Possibilities Curve Is a =