The Fact That the Slope of the Production Possibilities Curve

question 168

Multiple Choice

The fact that the slope of the production possibilities curve becomes steeper as we move down along the curve indicates that

• A) the principle of increasing opportunity costs is relevant.
• B) society's resources are limited.
• C) the opportunity cost of producing each product is constant.
• D) resources are perfectly substitutable between alternative uses.

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Definitions:

Horizontal Axis

In a graph or chart, the x-axis, which usually represents the independent variable or time scale.

Purchases

Transactions in which goods or services are acquired in exchange for money, indicating consumer buying behavior or demand in an economy.

Tacos

A traditional Mexican dish consisting of a folded or rolled tortilla filled with various mixtures, such as seasoned meat, beans, cheese, and lettuce.

Milkshakes

A cold beverage made from blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, chocolate syrup, or fruit syrup.