Discuss the characteristics of Production Possibility Frontier.
OR
Draft a hypothetical schedule for a straight line Production Possibility Curve.

Explanation

The two basic characteristics of Production Possibility Frontier (PPF) are:
1. PPF slopes Downwards as more of one good can be produced only by taking resources away from the production of another good.
2. PPF is Concave Shaped because of increasing marginal rate of transformation (MRT), i.e., more and more units of one commodity are sacrificed are sacrificed to gain an additional unit of another comodity. MRT Increases because it is assumed that no resource is equally efficient in production of all goods.
OR

Since Marginal Rate of Transformation is constant, PPC will be a straight line.