If the PPF is linear, i.e., a straight line, which one of the following statements is true?
A. As the production of a good increases, the opportunity cost of that good rises.
B. As the production of a good increases, the opportunity cost of that good falls.
C. Opportunity costs are constant.
D. The economy is not at full employment when operating on the PPF.
Answer:C
If the PPF is linear, i.e., a straight line, which one of the following statements is true?
A. As the production of a good increases, the opportunity cost of that good rises. B. As the production of a good increases, the opportunity cost of that good falls. C. Opportunity costs are constant. D. The economy is not at full employment when operating on the PPF.