The idea of increasing opportunity cost is reflected in the
A) bowed out shape of the production possibilities frontier.
B) bowed in shape of the production possibilities frontier.
C) linear shape of the production possibilities frontier.
D) positive slope of the production possibilities frontier.
E) fact that the PPF shows there are unattainable production points.

Question

Quizplus · Accepted Answer

The bowed out shape of the production possibilities frontier reflects increasing opportunity cost. As you move down the PPF, the opportunity cost of producing one good increases as more and more resources are shifted away from the production of the other good. This is represented by the increasingly steep slope of the PPF.

The Idea of Increasing Opportunity Cost Is Reflected in the