If the production possibilities frontier for two goods is shown as a straight line, this implies that
A. there is no trade-off between the two goods.
B. the principle of increasing costs is present.
C. the slope of the production possibilities frontier is increasing.
D. there are no specialized resources used in the production of these goods.
Answer: D
Economics
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A) public goods are likely to be overprovided. B) market failure is less likely to occur. C) public goods are likely to be underprovided. D) the free-rider problem is more likely to occur.
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The proportion of income which is earned in the form of wages for labor is currently about
A. 15 percent. B. 35 percent. C. 51 percent. D. 60 percent.
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