The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-Refer to Figure 1- 4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?
A)the increasing opportunity cost of producing more of either good
B)the decreasing opportunity cost of producing more of either good
C)the unfair distribution of resources in the economy
D)the scarcity of resources in the economy
E)the constant opportunity cost of producing more of either good

Question

The diagram below shows two production possibilities boundaries for Country X.
  FIGURE 1- 4
-Refer to Figure 1- 4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?
A)the increasing opportunity cost of producing more of either good 
B)the decreasing opportunity cost of producing more of either good 
C)the unfair distribution of resources in the economy 
D)the scarcity of resources in the economy 
E)the constant opportunity cost of producing more of either good

Quizplus · Accepted Answer

The concave shape of the PPB demonstrates increasing opportunity cost of producing more of either good. This means that as more of one good is produced, increasingly larger amounts of the other good must be given up.

The Diagram Below Shows Two Production Possibilities Boundaries for Country