A production possibilities curve that is "bowed out" or concave to the origin:
A)illustrates a tradeoff in which the opportunity cost of a good increases with the level of its production.
B)illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production.
C)illustrates a tradeoff in which the opportunity cost of a good is constant at all levels of production.
D)demonstrates the fallacy of composition.

Question

A production possibilities curve that is "bowed out" or concave to the origin:
A)​illustrates a tradeoff in which the opportunity cost of a good increases with the level of its production.
B)​illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production.
C)​illustrates a tradeoff in which the opportunity cost of a good is constant at all levels of production.
D)​demonstrates the fallacy of composition.

Quizplus · Accepted Answer

The Answer of A production possibilities curve that is "bowed out" or concave to the origin:
A)​illustrates a tradeoff in which the opportunity cost of a good increases with the level of its production.
B)​illustrates a tradeoff in which the opportunity cost of a good decreases with the level of its production.
C)​illustrates a tradeoff in which the opportunity cost of a good is constant at all levels of production.
D)​demonstrates the fallacy of composition.

A Production Possibilities Curve That Is "Bowed Out" or Concave