If the Production Possibilities Curve Is a Straight Line

question 235

Multiple Choice

If the production possibilities curve is a straight line,

• A)the two goods will sell at the same market prices.
• B)economic resources are perfectly substitutable between the production of the two goods.
• C)the two goods are equally important to consumers.
• D)equal quantities of the two goods will be produced at each possible point on the curve.

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Definitions:

Shortage

A situation where the demand for a product or service exceeds the available supply at a particular price.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of it that suppliers are willing to provide at that price.

Ticket Scalpers

Individuals who purchase tickets to events at face value and then sell them at a higher price, typically without authorization, aiming to profit from the high demand.

Consumers

Individuals or entities that purchase goods or services for personal use rather than for manufacturing or resale.