Question

question 3 (10 points) ✔ saved why is a production possibilities curve negatively sloped? unemployment decreases as an economy moves down along the curve. unemployment increases as an economy moves down along the curve. as the price falls, more goods are purchased. along the curve, production of one good must be sacrificed to increase production of another good.

Explanation:

The production possibilities curve (PPC) represents maximum output combinations of two goods with fixed resources. A negative slope reflects the concept of opportunity cost: since resources are scarce and fully employed on the PPC, producing more of one good requires reallocating resources away from the other, meaning production of the second good must be sacrificed. The other options are incorrect: the PPC assumes full employment, so unemployment does not change along the curve, and price levels are unrelated to the PPC's slope.

Answer:

D. Along the curve, production of one good must be sacrificed to increase production of another good.