If Additional Units of Any Good Can Be Produced at a Constant

question 114

Multiple Choice

If additional units of any good can be produced at a constant opportunity cost, the production possibilities frontier is

• A)positively sloped and linear.
• B)bowed inward and negatively sloped.
• C)linear and negatively sloped.
• D)bowed outward and negatively sloped.
• E)horizontal.

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Definitions:

Obligation

An obligation is a legal or moral duty to do or not to do something.

Purchase-Money Security

A legal interest or lien on a piece of property which secures the repayment of the funds used to purchase the property.

Collateral

An asset pledged by a borrower to secure a loan, subject to seizure in the event of default.

Secured Party

A secured party refers to an individual or entity that holds an interest in the secured property, typically as collateral, to secure payment or performance of an obligation.