If the marginal rate of transformation is constant throughout, the production Possibilities Frontier will be |
Downward sloping and concave to the origin. Downward sloping and convex to the origin. Downward sloping and linear. Upward sloping straight line. |
Downward sloping and linear. |
The correct answer is Option (3) → Downward sloping and linear. The Production Possibilities Frontier (PPF) shows the various combinations of two goods that an economy can produce using all its resources efficiently.
Thus, the PPF will be a straight line (linear) sloping downward from left to right. |