Increasing opportunity costs suggest that:
A) Resources are not perfectly shiftable between the production of two goods
B) Resources are fully shiftable between the production of two goods
C) A country's production possibilities curve appears as a straight line
D) A country's production possibilities curve is bowed inward (i.e.,convex) in appearance

Question

Quizplus · Accepted Answer

Increasing opportunity costs occur because resources are not perfectly adaptable to the production of both goods, leading to a bowed-outward (concave) production possibilities curve.

Increasing Opportunity Costs Suggest That