What will be the shape of the PPC in the table below?
| Good A (units) | 0 | 10 | 20 | 30 | 40 |
| Good B (Units) | 40 | 30 | 20 | 10 | 0 |
Answer & explanation
Correct answer: option 3
the correct answer is Option 3: Straight line
The table provided shows that as production of Good A increases by a constant amount (10 units), the production of Good B decreases by an equal amount (10 units). This indicates a constant opportunity cost for producing both goods, meaning that the economy gives up the same quantity of Good B to produce an additional quantity of Good A at every point.
In such a case, the Production Possibility Curve (PPC) would be a straight line, reflecting constant opportunity costs.