-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 74

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Measuring food on the horizontal axis,the joint production possibility frontier will have a slope of -1

• A) only when 20-30 units of food are produced.
• B) only when 10-20 units of food are produced.
• C) only when 10-20 units of clothing are produced.
• D) throughout the entire PPF.

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Definitions:

Price

A value placed on an object exchanged between a buyer and a seller.