Because you can only get more of one good by giving up some of another good, the shape of a production possibilities curve is: A

Economics May 21, 2021

Because you can only get more of one good by giving up some of another good, the shape of a production possibilities curve is:
A. upward sloping. B. perfectly vertical. C. perfectly horizontal. D. downward sloping.

Expert Solution

Answer

Explanation

The correct option is D "Downward Sloping". The shape of the Production Possibility Curve is Downward Sloping as more of one good can only be produced by taking resources out from the production of another good. The economy has to make choices and it would still cannot produce unlimited amounts of a good.

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