Figure 3-2 Brazil's Production Possibilities Frontier

Multiple Choice

Figure 3-2
Brazil's Production Possibilities Frontier
-Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that

A) for Brazil,it is more costly to produce peanuts than it is to produce cashews.
B) Brazil will produce more peanuts and fewer cashews as time goes by.
C) Brazil faces a tradeoff between producing peanuts and producing cashews.
D) Brazil should specialize in producing cashews.