If resources are better suited toward the production of one good than toward the other good,then the PPF for those two goods is
A) a straight line.
B) bowed outward.
C) upward sloping.
D) any of the above

Question

Quizplus · Accepted Answer

If resources are better suited toward the production of one good than the other good, then the PPF for those two goods is bowed outward. This indicates that the opportunity cost of producing one good increases as the production of that good increases. The best choice is B, as it accurately describes the situation when resources are not equally suited for the production of both goods.

If Resources Are Better Suited Toward the Production of One