Below Is a Production Possibilities Curve for a Large Tract

question 86

Multiple Choice

Below is a production possibilities curve for a large tract of prairie farm land.

-Refer to the graph above to answer this question.Given the shape of the PP curve,which of the following statements is correct?

• A)The law of increasing costs doesn't apply.
• B)The resources being used to produce rye and wheat are very similar.
• C)The two goods being produced are very similar.
• D)Opportunity costs are constant.
• E)It is better for the economy to product rye.

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Definitions:

Production Facility

A location or establishment where goods are manufactured or assembled.

Hazardous Wastes

Hazardous Wastes are materials that pose considerable harm to health or the environment, requiring special handling, treatment, and disposal.

Proximity To Raw Materials

The strategic advantage gained by being located near the supply of raw materials, reducing transportation costs and time.

Physical Characteristics

The tangible attributes or features of an object, person, or location that can be observed with the senses.