Because you can get more of one good only by giving up some of another good, the shape of a production possibility curve is:
A. upward-sloping.
B. perfectly vertical.
C. perfectly horizontal.
D. downward-sloping.
Answer:D
Because you can get more of one good only by giving up some of another good, the shape of a production possibility curve is:
A. upward-sloping. B. perfectly vertical. C. perfectly horizontal. D. downward-sloping.
Explanation: The negative slope of a production possibility curve represents the opportunity cost concept—you get more of one benefit only if you get less of another.