Why Are Production Possibilities Frontiers Usually Bowed Outward

question 19

Multiple Choice

Why are production possibilities frontiers usually bowed outward?

• A) The more resources a society uses to produce one good, the fewer resources it has available to produce another good.
• B) It reflects the fact that the opportunity cost of producing a good falls as more of the good is produced.
• C) It is because of the effects of technological change.
• D) Resources are specialized; that is, some are better at producing particular goods rather than other goods.

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Definitions:

Total Spending

The aggregate amount of money expended by individuals, businesses, and governments on goods and services within a certain period.

Output of Goods

The total amount of products, including goods and services, produced by a company or country within a specified period.

Higher Prices

A scenario where the cost of goods or services increases, often due to factors such as inflation, increased demand, or higher production costs.

Allegorical Painting

A form of art where the subjects and elements carry a symbolic meaning, often reflecting moral, religious, or historical themes.