Question

multiple choice question when you see a production possibilities frontier (ppf) drawn as a straight line, the opportunity cost of one good or service (in terms of the other good or service that must be given up) is assumed to be: decreasing. horizontal. vertical. constant.

Explanation:

A straight-line Production Possibilities Frontier (PPF) implies that the trade-off between producing two goods or services is fixed. This means the amount of one good given up to produce an additional unit of the other good stays the same at all points on the frontier, which defines constant opportunity cost. Decreasing opportunity cost would result in a bowed-out PPF, while horizontal/vertical PPFs represent extreme cases where only one good can be produced, not a general straight-line PPF scenario.

Answer:

O constant.