Answer:
B. True
Step-by-step explanation:
1. Create a production possibilities table
The country can use five workers to produce a barrel of wine. The other five workers will produce 5 yd of cloth.
If it uses 10 workers to produce two barrels of wine, it will produce no cloth.
If it uses 10 workers to produce 10 yd of cloth, it will produce no wine.
Here is the same information in table form.
[tex]\begin{array}{cc}\textbf{Cloth/yd} & \textbf{Wine/bbl} \\0 & 2 \\5 & 1 \\10 & 0 \\\end{array}[/tex]
2. Create a ppf graph
Place wine on the vertical axis. The graph should look like the one below.
3. Calculate the slope
[tex]\begin{array}{rcl}\text{Slope} & = & \dfrac{\Delta y }{\Delta x}\\\\& = &\dfrac{\text{(0 - 2) bbl wine}}{\text{(10 - 0) yd cloth}} \\\\& = & \dfrac{\text{-2 bbl wine}}{\text{10 yd cloth}}\\\\& = & \mathbf{-\frac{1}{5}}\textbf{ bbl wine/yd cloth}\\\end{array}[/tex]
You lose 1 bbl of wine for every 5 yd of cloth you produce,
