Author Question: If the production possibilities curve is a straight line: a. opportunity costs increase as output ... (Read 63 times)

Jramos095 · **on:** Jun 30, 2018

If the production possibilities curve is a straight line:
a. opportunity costs increase as output of either commodity is expanded.
b. resources are not equally substitutable between the production of the goods.
c. opportunity costs are negative.
d. as an increasing quantity of resources are shifted from one manufacturing process (good Y) to another (good X), there is no increase in opportunity cost.

Question 2

It is absolutely necessary for at least one trader to have money for barter exchange to take place.
a. True
b. False
Indicate whether the statement is true or false