If an Economy Has to Sacrifice Only One Unit of Good

question 173

Multiple Choice

If an economy has to sacrifice only one unit of good X for each unit of good Y produced throughout the relevant range, then its production possibilities curve has a(n) :

• A) zero slope.
• B) constant, negative slope.
• C) increasing, negative slope.
• D) decreasing, negative slope.

---

Definitions:

U.S. Market

This term refers to the economic market in the United States encompassing the trading of goods, services, securities and commodities.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others.

Domestic Price

The price level of goods and services within a country's border, reflecting the domestic market's supply and demand conditions.

Shoes

Footwear crafted from various materials designed to protect and comfort the human foot while enabling mobility, often reflecting fashion and social status.