If a Production Possibilities Frontier (PPF)is Concave Outward,it Follows That

question 108

Multiple Choice

If a production possibilities frontier (PPF) is concave outward,it follows that

• A) opportunity costs are constant between two goods.
• B) the opportunity cost (of producing the good on the horizontal axis)rises as more of the good is produced.
• C) the opportunity cost (of producing the good on the horizontal axis)falls as more of the good is produced.
• D) the opportunity cost (of producing the good on the horizontal axis)first rises and then falls as more of the good is produced.
• E) none of the above

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Definitions:

Airline Deregulation Act

A United States federal law passed in 1978 that removed governmental control over fares, routes, and market entry of new airlines, significantly reducing barriers to entry in the airline industry.

Civil Aeronautics Board

The Civil Aeronautics Board was a federal agency in the United States that regulated aviation services, including fares, routes, and schedules, before its dissolution in 1985.

Fares

The prices charged for transportation services, such as bus, train, or airplane tickets.

Routes

Paths or directions followed for the transportation of goods or services from one location to another.