If the opportunity cost of producing extra units of one good (expressed in terms of the amount of another good given up) remains constant, then the shape of the production possibilities curve is:
A) A straight horizontal line
B) A straight downward-sloping line
C) An upward-sloping line
D) A vertical line

Question

Quizplus · Accepted Answer

A straight downward-sloping line indicates constant opportunity cost, as the trade-off between the two goods remains the same regardless of the quantities produced.

If the Opportunity Cost of Producing Extra Units of One