Question

production possibilities frontier will be linear instead of bowed out if

A the opportunity cost of producing more of either of the two goods is constant.

B the opportunity cost of producing more of either of the two goods is zero.

C the opportunity cost of producing either of the two goods always increases.

D resources are employed efficiently.

Answer 1

Production possibility curve can be defined as the different combination of two goods which can be produced by using all available resources efficiently.

So a point inside the PPF shows the inefficiency point, a point on the PPF shows the efficient utilization of the resources while the point outside the PPF shows the point which is unattainable with the given resources and technology.

So if the opportunity cost of producing more of either of the two goods is constant, then the PPF will be the straight line instead of bowed outward. The PPF bowed outward if the opportunity cost of producing either of the two goods always increases.

Hence it can be said that production possibilities frontier will be linear instead of bowed out if the opportunity cost of producing more of either of the two goods is constant.

Hence option A is the correct answer.