The bowed shape of the production possibilities frontier can be explained by the fact that
A)all resources are scarce.
B)economic growth is always occurring.
C)the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.
D)the only way to get more of one good is to get less of the other.

Question

Quizplus · Accepted Answer

The bowed shape of the production possibilities frontier is due to the fact that the opportunity cost of producing more of one good in terms of the other depends on how much of each good the economy is already producing. As more of one good is produced, resources that are better suited for producing the other good must be used, causing the opportunity cost to increase. This leads to a tradeoff between the two goods and results in a curved production possibilities frontier, rather than a straight line.

The Bowed Shape of the Production Possibilities Frontier Can Be