A Nation's Production Possibilities Curve Is "Bowed Out" from the Origin

question 143

Multiple Choice

A nation's production possibilities curve is "bowed out" from the origin because:

• A)resources are not equally efficient in producing every good.
• B)the originator of the idea drew it this way and modern economists follow this convention.
• C)resources are scarce.
• D)wants are virtually unlimited.

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Definitions:

Demand Function

An equation showing the relationship between the quantity of a good consumers want to buy and its price, alongside other factors like income and prices of related goods.

Buick Owner's Demand

The specific preferences and buying patterns of individuals who own or are interested in purchasing Buick vehicles.

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Gas Pump

A gas pump is a machine at a filling station that is used to transfer gasoline from a reservoir to a vehicle's fuel tank.