What Does a Linear (Straight Line) Production Possibilities Curve Illustrate

question 48

Multiple Choice

What does a linear (straight line) production possibilities curve illustrate?

• A) a trade-off in which the opportunity cost of a good increases with the level of its production
• B) a trade-off in which the opportunity cost of a good is constant at all levels of production
• C) a trade-off in which the opportunity cost is zero with all levels of production
• D) a trade-off in which the opportunity cost of a good decreases with the level of its production

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Definitions:

Self-Handicapping

A strategy where individuals create obstacles to their own success to protect self-esteem in case of failure.

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change.

Dissonance Theory

A theory that suggests people are motivated to reduce the discomfort (dissonance) caused by inconsistencies between their beliefs and their actions.

Balance Model

A theoretical framework for understanding how different elements within a system maintain a state of equilibrium or balance.