How Does an Economy Represented by a Straight-Line Production Possibilities

question 26

Multiple Choice

How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?

• A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost.
• B) In the economy represented by a straight-line production possibilities curve, neither good is scarce.
• C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply.
• D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.

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Definitions:

Cerumen

A wax-like substance produced by glands in the ear canal; also called earwax.

Pruritus

This term refers to severe itching of the skin, which can be a symptom of various conditions, including dermatological diseases, allergic reactions, and systemic diseases.

Vertigo

Dizziness.

Presbycusis

Age-related hearing loss, typically occurring in both ears, slowly progressing as a person ages.