If the Production Possibilities Curve Is Drawn as a Straight

question 128

Multiple Choice

If the production possibilities curve is drawn as a straight line it means that:

• A) the tradeoff between the two goods is constant.
• B) the tradeoff between the two goods is decreasing.
• C) no tradeoff is possible between the two goods.
• D) the tradeoff between the two goods is increasing.

---

Definitions:

Unemployed

Individuals who are without a job but are actively seeking employment.

1937-1938

A period marked by a sharp economic downturn in the United States, considered a recession within the Great Depression era.

American Revolution

The period of political and military action (1775-1783) during which the thirteen American colonies won independence from Great Britain, leading to the establishment of the United States of America.

Labor

The work performed by individuals that contributes to the production of goods and services, typically rewarded with wages.