If a Production Possibility Frontier (PPF)is Drawn Concave to the Origin

question 65

Multiple Choice

If a production possibility frontier (PPF) is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

• A)an increasing opportunity cost of producing T-shirts.
• B)an increasing opportunity cost of producing shoes.
• C)constant opportunity cost of producing T-shirts.
• D)constant opportunity cost of producing shoes.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.