Consider the following combinations of guns and butter that can be produced 0 guns, 20,000 units of butter, 5,000 guns, 15,000 units of butter, 10,000 guns, 10,000 units of butter, 15,000 guns, 5,000 units of butter 20,000 guns, 0 units of butter. the ppf between guns and butter is a a downward-sloping bowed-out curve b a downward-sloping straight line c an upward-sloping straight line d it is impossible to answer this question without knowing which good would be plotted on the vertical axis

B. Downward sloping straight line.

Explanation:

Production Possibility Frontier is graphical representation of two goods that an economy can produce , given resources & technology .

Production Possibility Frontier is downward sloping because of negative relationship between two goods , one good can be increased by reducing other - given same resources & technology.

The slope of PPF depends on Marginal Opportunity Cost i.e amount of a good sacrifised to gain an additional of the other one i.e Δgood sacrifised / Δgood gained . If MOC is constant : PPF is a straight line (like in this case) ; If MOC is increasing (general case - due to resource shift from efficient to inefficient good production) : PPF is concave / outward bowed curve ; If MOC is decreasing : PPF is convex .

As per given schedule :

Guns  Butter  MOC (Δgood sacrifised / Δgood gained)

0         20000    _

5000   15000    5000 / 5000 = 1

10000  10000   5000 / 5000 = 1

15000   5000    5000 / 5000 = 1

2000      0         5000 / 5000 = 1

As it can be seen : Guns are increasing & Butter are falling , so these have inverse relationship & PPF is downward sloping .The ratio of butter sacrifised to gain guns is constant, so MOC is constant & PPF is straight line.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know