If an economy experiences constant opportunity costs with respect to two goods, then the production possibilities curve between the two goods will be?
A) Bowed outward or concave from below.
B) A straight, downward-sloping line.
C) Bowed inward or convex from below.
D) Bowed outward until the two goods are equal, and then bowed inward.

Question

Quizplus · Accepted Answer

When an economy experiences constant opportunity costs with respect to two goods, the production possibilities curve (PPC) is a straight, downward-sloping line. This indicates that the opportunity cost of producing one good in terms of the other remains constant as production shifts between the two goods.

If an Economy Experiences Constant Opportunity Costs with Respect to Two