A production possibilities frontier is bowed outward when
A)the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good.
B)an economy is self-sufficient instead of interdependent and engaged in trade.
C)the rate of trade-off between the two goods being produced is constant.
D)the rate of trade-off between the two goods being produced depends on how much of each good is being produced.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is bowed outward when the opportunity cost of producing one good increases as more of it is produced, which means the rate of trade-off between the two goods depends on the quantities being produced. This reflects increasing opportunity costs.

A Production Possibilities Frontier Is Bowed Outward When