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Central Problems & the PPC · Question 45 of 87

Question 45

MediumOriginal question

A PPC would be a straight line if

Options for question 45

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. If every resource were equally good at making both goods, moving it would always give up the same amount: constant MRT.

  2. A constant MRT gives a straight-line PPC.

Concept
When the PPC is a straight line
Typical time
70 s
Your time
—
The rule this testsThe production possibility curve
Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.

Practise this chapter →

Ten questions from Central Problems & the PPC, at your own pace.