Suppose a Production Possibilities Curve Is a Downward-Sloping Straight Line

question 88

Multiple Choice

Suppose a production possibilities curve is a downward-sloping straight line.What does this indicate?  

• A) that society cannot decide which good it prefers 
• B) an absence of scarcity 
• C) constant opportunity cost 
• D) inefficiency

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Definitions:

Equity Loan

A type of loan in which the borrower uses the equity of their home as collateral.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.

Relative Frequency

The ratio of the number of times an event occurs to the total number of trials or observations.

Subjective

Rooted in or swayed by one's own emotions, preferences, or views.