A production possibility graph slopes down because of:

Question

Quizplus · Accepted Answer

The production possibility graph slopes down because of the scarcity of resources. As we produce more of one good, we need to give up some of the resources that were being used to produce the other good, so the production of that other good decreases. This demonstrates the concept of opportunity cost, which is the cost of giving up one choice in favor of another. When resources are limited, every choice means giving up something else, and this is reflected in the downward slope of the production possibility graph.

A Production Possibility Graph Slopes Down Because Of