On a Straight-Line Production Possibilities Frontier, Which of the Following

question 102

Multiple Choice

On a straight-line production possibilities frontier, which of the following is true?

• A)The problem of scarcity does not exist.
• B)Resources are imperfect substitutes.
• C)Opportunity costs are constant.
• D)Technology is rapidly expanding.
• E)Some resources are not being used efficiently.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or output.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Expenses that change in proportion to the activity or production level of a business.