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-(Figure: Strawberries and Submarines II)Use Figure: Strawberries and Submarines II.The downward slope of the production possibility frontier implies that resources:
A)must be used efficiently.
B)are scarce.
C)should not be wasted.
D)should be allocated so that approximately equal amounts of both goods are produced.

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Use the following to answer question:

-(Figure: Strawberries and Submarines II)Use Figure: Strawberries and Submarines II.The downward slope of the production possibility frontier implies that resources:
A)must be used efficiently. 
B)are scarce. 
C)should not be wasted. 
D)should be allocated so that approximately equal amounts of both goods are produced.

Quizplus · Accepted Answer

The downward slope of the production possibility frontier implies that resources are scarce, as it shows the trade-off between producing more of one good and less of the other. It does not necessarily imply that resources must be used efficiently or that both goods should be produced in equal amounts.

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