Question

If all resources were perfectly adaptable for alternative uses, the production possibilities curve would:

A. be bowed out.
B. be a loop.
C. be a straight line.
D. not exist.

Answer 1

The correct answer is letter "C": be a straight line.

Step-by-step explanation:

The Production Possibility Frontier (PPF) aims to determine what the maximum production would be using finite factors. Typically, the higher production of a good implies lowering the production of another. The PPF is represented by a graph with a vertical "X" axis and a horizontal "Y" axis for easiness in understanding.

Thus, if the factors for production were perfectly adaptable, the PPF curve will display a straight line in a graph.