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The graph shows how many new schools and new roads a city could build using all of its factor resources. What does the current production possibilities curve show?
a. As the number of schools increases, so does the number of roads.
b. As the number of schools increases, the number of roads decreases.
c. As the number of schools decreases, so does the number of roads.
d. The number of schools has no effect on the number of roads.

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Answer: B. As the number of schools increases, the number of roads decreases.

The graph showed that by using all of the factor resources of the city, in every increase in the number of the new schools created, there is decrease in the number of roads. If there is a continuous erection of new schools, the number of roads will continuously decrease.

B. As the number of schools increases, the number of roads decreases.

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