If the Opportunity Costs of Producing a Good Increase as More

question 216

Multiple Choice

If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be

• A) negatively sloped and "bowed inward" toward the origin.
• B) negatively sloped and "bowed outward" from the origin.
• C) a negatively sloped straight line.
• D) a positively sloped straight line.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded.

Surplus

An excess amount of something, especially in the context of production and supply exceeding demand in economics, leading to a situation where the quantity supplied is greater than the quantity demanded.

Nonprice Rationing

Methods of allocating goods and services without adjusting prices, often used in times of shortages, such as queuing or allocating based on need.

Queuing

The process or system by which people or items are arranged in a line awaiting their turn to be attended to or processed.