Multiple Choice
If the production possibilities frontier between bottled water and water in a jug is a straight line,which of the following statements would be correct?
A) There is no tradeoff between the two goods.
B) Resources are equally productive at producing either product.
C) A large amount of unemployment must exist.
D) There is no decrease in the production of one good when the production of the other is increased.
E) Producing more of one good gives the economy a free lunch.
Correct Answer:

Verified
Correct Answer:
Verified
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