A Production Possibilities Frontier Is a Straight Line When

question 33

Multiple Choice

A production possibilities frontier is a straight line when

• A)the more resources the economy uses to produce one good,the fewer resources it has available to produce the other good.
• B)an economy is interdependent and engaged in trade instead of self-sufficient.
• C)the rate of tradeoff between the two goods being produced is constant.
• D)the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.

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Definitions:

Partnerships

A business structure where two or more individuals manage and operate a business in accordance with terms set out in a Partnership Agreement.

Sole Proprietorship

A business owned and operated by one person.

Corporation

A business structure that creates an entity separate from its owners and managers.

Public Company

A corporation whose shares are traded openly on stock exchanges, subject to regulatory oversight and required to disclose financial and other significant information.