Question

    How is the slope of the production possibility curve (PPC) described?

    A Concave to the origin Correct Answer Incorrect Answer
    B Vertical to the origin Correct Answer Incorrect Answer
    C Convex to the origin Correct Answer Incorrect Answer
    D Horizontal to the origin Correct Answer Incorrect Answer

    Solution

    The slope of the production possibility curve (PPC) is concave to the origin due to the increasing marginal opportunity cost as resources are shifted from the production of one good to another.

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