If a Linear, Two-Good Production Possibilities Curve Has a Slope

question 140

Multiple Choice

If a linear, two-good production possibilities curve has a slope of ‒2, then:

• A)having an additional unit of the good measured on the vertical axis means giving up 2 units of the good measured on the horizontal axis.
• B)having an additional unit of the good measured on the vertical axis means giving up ½ of a unit of the good measured on the horizontal axis.
• C)you have an absolute advantage in the good measured on the vertical axis.
• D)you have a comparative advantage in the good measured on the vertical axis.

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Definitions:

Years

Units of time equal to 365 or 366 days, used in the Gregorian calendar to measure the duration of a long period.

Mammography

An X-ray examination of the breast, used to detect and diagnose breast diseases like cancer.

Compressed

The state of being pressed into less space or condensed, often used in the context of data or materials.

Radiation

The emission and diffusion of rays; a product of X-ray and radium.