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If a Linear, Two-Good Production Possibilities Curve Has a Slope

Question 114

Multiple Choice

If a linear, two-good production possibilities curve has a slope of ‒2, then:


A) having an additional unit of the good measured on the vertical axis means giving up 2 units of the good measured on the horizontal axis.
B) having an additional unit of the good measured on the vertical axis means giving up ½ of an unit of the good measured on the horizontal axis.
C) you have an absolute advantage in the good measured on the vertical axis.
D) you have a comparative advantage in the good measured on the vertical axis.

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