A Straight-Line Production Possibilities Curve Takes This Shape Because

question 286

Multiple Choice

A straight-line production possibilities curve takes this shape because

• A) the opportunity cost of producing a good is constant.
• B) the opportunity cost of producing more of a good is decreasing.
• C) resources are better suited for producing one output than another.
• D) resources are fixed.

---

Definitions:

Equipment

Assets used in the production or supply of services, often subject to depreciation over their useful lives.

Owner's Capital

The amount of money and other forms of assets invested into a business by the owner(s), minus any withdrawals, representing the owner’s equity.

Accounts Debited

The accounts on the left side of the accounting equation that increase with a debit transaction and decrease with a credit transaction.

Accounts Credited

Refers to the entries made on the credit side of a ledger, indicating a reduction in assets or an increase in liabilities or equity.