Suppose Poland produces only smartphones and tablets. 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 tablets and smartphones.
The shape of Poland's production possibilities frontier (PPF) should reflect the fact that as Poland produces more tablets and fewer smartphones, the opportunity cost of producing each additional tablet _________?
*decreases
*increases
*remains constant .
The following graphs show two possible PPFs for Poland's economy: a straight-line PPF ( ) and a bowed-out PPF ( ).
Graph 1
|\
| \
| \
| \
|____\________
1
Graph 2
a curve
2
Based on the previous description, the trade-off Poland faces between producing tablets and smartphones is best represented by _________?
*graph 1
*graph 2