34. If all resources were equally productive the PPC would be:
Answer: D
The PPC would be a negatively sloped straight line if all resources were equally productive.
In this scenario, the production possibility curve (PPC) represents the trade-off between two goods when resources can be allocated efficiently and are perfectly substitutable. A negatively sloped straight line indicates that increasing the production of one good reduces the production of the other at a constant rate.
A) vertical line
A vertical line on the PPC would suggest that the production of one good can occur without any reduction in the other good, which contradicts the concept of opportunity cost. This option implies that resources are not being allocated efficiently or that they cannot be shifted between goods, making it incorrect.
B) horizontal line
A horizontal line would imply that the production of one good can increase without any decrease in the other, which again indicates that opportunity costs are zero. This does not align with the principle of resource allocation and trade-offs, rendering this option incorrect.
C) positively sloped straight line
A positively sloped straight line would indicate that increasing the production of one good increases the other, which does not reflect the trade-off nature of the PPC. This suggests a scenario where both goods can be produced simultaneously without opportunity cost, making this option incorrect.
D) negatively sloped straight line
A negatively sloped straight line accurately represents the scenario where all resources are equally productive, indicating a constant opportunity cost. This means that for every unit of one good produced, a fixed amount of the other good must be sacrificed, thereby demonstrating the fundamental economic principle of scarcity and trade-offs.
Conclusion
The correct answer, a negatively sloped straight line, effectively illustrates the trade-off between two goods when resources are equally productive. All other options misrepresent the relationship between goods and the concept of opportunity cost, highlighting their incorrectness in this context.