The Bowed-Outward Shape of a PPF

question 214

Multiple Choice

The bowed-outward shape of a PPF

• A) is due to the existence of increasing opportunity cost.
• B) reflects the unequal application of technology in production.
• C) illustrates the fact that no opportunity cost is incurred for increasing the production of the good measured on the horizontal axis but it is incurred to increase production of the good measured along the vertical axis.
• D) is due to capital accumulation.

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Definitions:

Debts

Obligations owed by one party (the debtor) to another (the creditor), typically involving borrowed money that is expected to be paid back with interest.

Minor

An individual under the legal age of majority, typically 18 years in many jurisdictions, not having full legal rights and responsibilities.

Non-necessary Items

Products or services deemed not essential for basic living and functioning.

Gifts

Voluntary transfers of property or funds to another party without expecting anything in return.