question_answer

Giving reason comment on the shape of Production Possibilities curve based on the following schedule:
Good X (units)	Good Y (units)
0	8
1	6
2	4
3	2
4	0

Answer:

Based on the below schedule, we can say that PPC is a downward sloping straight line. This is because the opportunity cost of producing one good (i.e. Good X) in terms of another (i.e. Good Y) remains the same, that is, 2 (ignoring the minus sign).
Good X (units)	Good Y (units)	Opportunity Cost
0	8	-
1	6	2
2	4	2
3	2	2
4	0	2
The following figure depicts the shape of PPC.
Thus, the shape of PPC is downward sloping straight line which can be attributed to the constant opportunity cost.