Table 3-16
The following table contains some production possibilities for an economy for a given month.
-Refer to Table 3-16. If the production possibilities frontier is bowed outward, then "?" could be
A)200.
B)300.
C)400.
D)500.

Question

Table 3-16
The following table contains some production possibilities for an economy for a given month. 
-Refer to Table 3-16. If the production possibilities frontier is bowed outward, then "?" could be
A)200. 
B)300. 
C)400. 
D)500.

Quizplus · Accepted Answer

A bowed outward production possibilities frontier indicates increasing opportunity costs, meaning that as more of one good is produced, larger amounts of the other good must be given up. Therefore, the value of "?" would be the largest number, 500, reflecting this concept.

Table 3-16 The Following Table Contains Some Production Possibilities for an Economy