Answered

If a country harnesses the comparative advantage of some resources over others, the slope of its production possibilities curve is likely to be:

A. negative but not constant
B. positive and constant
C. negative and constant
D. positive but not constant



Answer :

Final answer:

The production possibilities curve's slope reflects the law of increasing opportunity cost due to resource scarcity and allocations based on comparative advantage.


Explanation:

The downward slope of a production possibilities curve reflects the scarcity of resources, where producing more of one good requires giving up some of another. When a country allocates resources based on comparative advantage, the curve is bowed out, indicating the law of increasing opportunity cost. This means that as production shifts, the slope of the curve becomes steeper, showing a greater sacrifice of one good for producing more of another.


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