A Straight-Line Production Possibilities Boundary Differs from a Concave Boundary

question 79

Multiple Choice

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

• A)The straight-line boundary illustrates constant opportunity costs,whereas the concave boundary illustrates increasing opportunity costs.
• B)The concave boundary illustrates constant opportunity costs,whereas the straight-line boundary illustrates decreasing opportunity costs.
• C)The straight-line boundary does not show scarcity,whereas the concave boundary does.
• D)The straight-line boundary shows opportunity cost,whereas the concave boundary does not.
• E)A straight-line boundary is associated with a command economy,whereas a concave boundary is associated with a free-market economy.

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Definitions:

Full Warranty

is a comprehensive guarantee that a manufacturer or seller makes, promising to repair, replace, or refund a product if it fails within a specified period.

Implied Warranty

A guarantee that is not written or spoken but is understood and legally binding, ensuring goods or services meet certain standards of quality and reliability.

Implied Warranty

A legal presumption that a product will fulfill the basic functions for which it was sold, without being explicitly stated by the seller.

Merchantability

Concerns the basic standard of quality and functionality that goods sold must meet, implying they are fit for the general purpose for which they are sold.