Why Is a Production Possibilities Curve Negatively Sloped

question 107

Multiple Choice

Why is a production possibilities curve negatively sloped?

• A) Along the curve, production of one good must be sacrificed in order to increase production of another.
• B) Unemployment increases as an economy moves down along the curve.
• C) As the price falls, more goods are purchased.
• D) Unemployment decreases as an economy moves down along the curve.