If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A)be bowed out.
B)be bowed in.
C)be a straight line.
D)not exist.

Question

Quizplus · Accepted Answer

A straight line production possibilities curve indicates that resources can be used interchangeably without any opportunity cost, meaning that all resources are perfectly adaptable for alternative uses. The slope of the straight line represents the constant opportunity cost of producing one good in terms of the other.

If All Resources Were Perfectly Adaptable for Alternative Uses, the Production