In relation to Production Possibilities Curve (PPC), which of the following statements is INCORRECT?
If the PPC curve is not a straight line, the opportunity cost is constant.
The correct answer is option 1. If the PPC curve is not a straight line, the opportunity cost is not constant; it increases or decreases as more resources are shifted between different goods. This is the concept of increasing opportunity costs, which is represented by a concave PPC. The other statements are correct: the PPC is also known as the production possibility boundary, a shift in the PPC curve represents economic growth, and points below the curve indicate underutilized resources or unemployment.
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