The production possibility frontier has a negative slope because _____.

The production possibility frontier has a negative slope because _____.

operating at a point on the frontier is not optimal

the costs of production are very high

resources are infinite while human wants are limited

it exhibits increasing opportunity costsCorrect

 

Explanation

The production possibility frontier’s negative slope exhibits increasing opportunity costs because more and more goods on the X axis have to be given up to increase the production of goods on the Y axis by equal amounts.