If the Production Possibilities Frontier Between Two Goods Is a Straight

question 217

Multiple Choice

If the production possibilities frontier between two goods is a straight line,then the

• A) opportunity cost is not a ratio.
• B) resources are equally productive in both goods.
• C) line does not qualify as a production possibilities frontier because the unattainable production points are too close to the inefficient production points.
• D) Both answers A and C are correct.
• E) Both answers A and B are correct.

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