Solved

Which of the Following Statements Is True About Production-Possibility Curves

Question 45

Multiple Choice

Which of the following statements is true about production-possibility curves?


A) Constant cost production-possibility curves are straight lines and usually lead to complete specialization under free trade.
B) Under free trade, bowed-out production-possibility curves are associated with partial specialization, because the opportunity cost of producing each good is constant along the curve.
C) Increasing cost production-possibility curves provide us with information about the preferences of the consumers.
D) Constant cost production-possibility curves are convex to the origin.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions