The PPF between guns and butter is a. a downward-sloping straight line. b. It is impossible to answer this question without knowing which good would be plotted on the vertical axis... The PPF between guns and butter is a. a downward-sloping straight line. b. It is impossible to answer this question without knowing which good would be plotted on the vertical axis. c. an upward-sloping straight line. d. a downward-sloping bowed-out curve.
Understand the Problem
The question is asking about the shape of the Production Possibility Frontier (PPF) when considering the trade-offs between the production of guns and butter based on given combinations. To determine the PPF, we would analyze the relationship between the quantities produced of both goods.
Answer
A downward-sloping bowed-out curve.
The PPF between guns and butter is a downward-sloping bowed-out curve.
Answer for screen readers
The PPF between guns and butter is a downward-sloping bowed-out curve.
More Information
The Production Possibilities Frontier (PPF) for 'guns and butter' typically represents the trade-off in an economy between military and civilian goods. A bowed-out curve illustrates increasing opportunity costs, where more of one good requires sacrificing increasingly larger amounts of the other.
Tips
A common mistake is assuming the PPF is a straight line, which would suggest constant opportunity costs, whereas in reality, opportunity costs typically increase, making the PPF bowed out.
Sources
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