Suppose that the opportunity cost of producing 10 chickens is always 8 turkeys. Given this, the relevant production possibility curve must be:
A. I.
B. II.
C. III.
D. IV.
Answer:B
Suppose that the opportunity cost of producing 10 chickens is always 8 turkeys. Given this, the relevant production possibility curve must be:
A. I. B. II. C. III. D. IV.
Explanation: This is the only curve along which opportunity cost is constant and equal to 0.8 turkeys per chicken. The curve is straight and negatively sloped.