Production possibilities frontiers in the Ricardian model:
A) are linear (i.e., straight lines), with end points showing a country's production when it produces only one or the other good.
B) are bowed out from the origin, with end points showing a country's production when it produces only one or the other good.
C) are linear and begin from the origin.
D) are curvilinear and increase at a decreasing rate.

Question

Quizplus · Accepted Answer

The Ricardian model assumes constant opportunity costs, which means that the production possibilities frontier is a straight line. The end points of the line show the country's production when it produces only one or the other good.

Production Possibilities Frontiers in the Ricardian Model