If a production possibility frontier (PPF)is drawn concave to the origin,with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement upward along the PPF reflects:
A)an increasing opportunity cost of producing T-shirts.
B)an increasing opportunity cost of producing shoes.
C)constant opportunity cost of producing T-shirts.
D)constant opportunity cost of producing shoes.

Question

Quizplus · Accepted Answer

When the PPF is concave to the origin, it indicates that the opportunity cost of producing one good in terms of the other is increasing as we move along the PPF. Therefore, a movement upward along the PPF reflects an increasing opportunity cost of producing T-shirts. This means that in order to produce more T-shirts, the economy must give up more and more shoes, which have a higher opportunity cost.

If a Production Possibility Frontier (PPF)is Drawn Concave to the Origin,with