Use the following to answer questions:
-If an economy has to sacrifice only 1 unit of good X for each unit of good Y produced throughout the relevant range,then its production possibility frontier has a(n):
A) zero slope.
B) constant negative slope.
C) increasing negative slope.
D) decreasing negative slope.

Question

Use the following to answer questions: 
-If an economy has to sacrifice only 1 unit of good X for each unit of good Y produced throughout the relevant range,then its production possibility frontier has a(n):
A) zero slope. 
B) constant negative slope. 
C) increasing negative slope. 
D) decreasing negative slope.

Quizplus · Accepted Answer

A constant negative slope indicates a constant sacrifice of good X for each unit of good Y produced, which is what is given in the question. A zero slope would indicate no opportunity cost, while an increasing or decreasing slope would indicate a changing opportunity cost, which is not stated in the question.

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