How Does an Economy Represented by a Straight-Line Production Possibilities

question 26

Multiple Choice

How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?

• A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost.
• B) In the economy represented by a straight-line production possibilities curve, neither good is scarce.
• C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply.
• D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.

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Definitions:

Body Fluids

Liquids within the human body that transport nutrients and waste, including blood, lymph, and interstitial fluid.

Developing Fetus

The stage in human embryonic development after the embryonic stage, characterized by rapid growth and the formation of organs.

Uterus

A female reproductive organ where the development of the fetus occurs during pregnancy.

Labia Minora

The inner set of folds of the vulva, located within the labia majora, playing a role in protecting the entrances to the vagina and urethra.