Question

Suppose Argentina produces only cars and trucks. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing both trucks and cars.
The shape of Argentina's production possibilities frontier (PPF) should reflect the fact that as Argentina produces more trucks and fewer cars, the opportunity cost of producing each additional truck....? (increase, decrease, remain constant )

The following graphs show two possible PPFs for Argentina's economy: a straight-line PPF ( ) and a bowed-out PPF ( ).
Based on the previous description, the trade-off Argentina faces between producing trucks and cars is best represented by ....?( graph 1, or graph 2 )

Answer 1

The best and the most correct answer among the choices provided by the question is the second choice. The production of trucks and cars is best represented by the second graph. I hope my answer has come to your help. God bless and have a nice day ahead!