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If the PPF is linear, i.e., a straight line, which of the following 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.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
If the PPF is linear, i.e., a straight line, which of the following is...
If the shape of the PPF curve is a straight-line, the opportunity cost is constant as production of different goods is changing. But, opportunity cost usually will vary depending on the start and end points.
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Most Upvoted Answer
If the PPF is linear, i.e., a straight line, which of the following is...
W.K.T PPF is linear when the opportunity cost from one product to other product is constant So the correct option is "C"
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Community Answer
If the PPF is linear, i.e., a straight line, which of the following is...
Explanation:
To determine which statement is true, we need to understand the relationship between the production of a good and its opportunity cost in a linear PPF.
- A linear PPF implies that the opportunity cost of producing a good remains constant as more of that good is produced. This is because resources are allocated in a fixed ratio between the two goods represented on the PPF.
Therefore, the correct answer is:
C: Opportunity costs are constant.
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If the PPF is linear, i.e., a straight line, which of the following 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.Correct answer is option 'C'. Can you explain this answer?
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If the PPF is linear, i.e., a straight line, which of the following 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.Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the PPF is linear, i.e., a straight line, which of the following 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.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the PPF is linear, i.e., a straight line, which of the following 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.Correct answer is option 'C'. Can you explain this answer?.
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