Figure 3-2 Peru's Production Possibilities Frontier

Multiple Choice

Figure 3-2
Peru's Production Possibilities Frontier

-Refer to Figure 3-2.The fact that the line slopes downward reflects the fact that

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