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If all resources were equally productive the PPC would be:

Rationale

If all resources were equally productive the PPC would be a negatively sloped straight line.

A Production Possibilities Curve (PPC) represents the maximum output combinations of two goods that an economy can produce using its resources efficiently. If resources are equally productive, the trade-off between producing the two goods remains constant, resulting in a straight line with a negative slope.

A (vertical line) YOUR ANSWER

A vertical line on a PPC would imply that the economy can produce an infinite amount of one good without any trade-off for the other good. This scenario suggests that resources are not being used efficiently and contradicts the concept of opportunity cost, where producing more of one good requires sacrificing some quantity of another.

B (horizontal line) YOUR ANSWER

A horizontal line indicates that an economy can produce an infinite amount of one good without sacrificing any quantity of the other. This situation is also unrealistic in a productive economy, as it disregards the principle of trade-offs and opportunity costs inherent in resource allocation.

C (positively sloped straight line) YOUR ANSWER

A positively sloped straight line suggests that increasing the production of one good will also increase the production of another, which is contrary to the principles of scarcity and opportunity cost. In practice, producing more of one good often requires reducing the output of another, which is why a positively sloped line is not representative of economic realities.

D (negatively sloped straight line) CORRECT

This answer correctly reflects that when resources are equally productive, the trade-off between the two goods remains constant, resulting in a linear relationship. The negative slope illustrates the opportunity cost—the amount of one good that must be given up to produce more of the other good—demonstrating the fundamental economic principle of scarcity.

Conclusion

In a scenario where all resources are equally productive, the PPC would indeed be a negatively sloped straight line. This representation accurately captures the trade-offs and opportunity costs inherent in production decisions. Understanding this relationship is crucial for analyzing resource allocation and efficiency in any economy.

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