Refer to the Following Figure to Answer the Questions That

Multiple Choice

Refer to the following figure to answer the questions that follow.

-Which statement best describes the opportunity cost evident in the production possibilities frontier (PPF) for the corresponding figure?

A) The law of increasing relative cost applies because the PPF is a straight line.
B) The law of increasing relative cost applies because the PPF is bowed outward.
C) The opportunity cost is constant because the PPF is a straight line.
D) The opportunity cost is constant because the PPF is bowed outward.
E) The opportunity cost decreases because the line has a negative slope.