A Straight-Line Production Possibilities Boundary Differs from a Concave Boundary

question 79

Multiple Choice

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

• A)The straight-line boundary illustrates constant opportunity costs,whereas the concave boundary illustrates increasing opportunity costs.
• B)The concave boundary illustrates constant opportunity costs,whereas the straight-line boundary illustrates decreasing opportunity costs.
• C)The straight-line boundary does not show scarcity,whereas the concave boundary does.
• D)The straight-line boundary shows opportunity cost,whereas the concave boundary does not.
• E)A straight-line boundary is associated with a command economy,whereas a concave boundary is associated with a free-market economy.

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