Suppose You Find a Production Possibilities Frontier (PPF)that Is Shaped

question 71

Multiple Choice

Suppose you find a production possibilities frontier (PPF) that is shaped like a straight line.What can you determine about the production of the two goods?

• A) Production of the two goods is subject to decreasing relative cost.
• B) Production of the two goods is subject to increasing relative cost.
• C) Production of the two goods is subject to constant opportunity cost anywhere along the PPF.
• D) One producer must have an absolute advantage in production.
• E) More resources will not cause the PPF to shift.

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Definitions:

Kruskal-Wallis H Test

A nonparametric test used to determine if there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.

Wilcoxon Rank-sum Test

A nonparametric statistical test used to compare two independent samples to see if they come from the same distribution.

Statistical Populations

A statistical population refers to the entire group of entities or outcomes that share a common characteristic, which is the subject of statistical analysis.

Kruskal-Wallis Test

A nonparametric statistical test used to determine if there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.