A Production Possibilities Frontier Will Have a Curved, or "Bowed

question 152

Multiple Choice

A production possibilities frontier will have a curved, or "bowed out," shape if

• A) opportunity costs are declining.
• B) opportunity costs are increasing.
• C) resources are scarce.
• D) the economy is growing.

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Definitions:

Marginal Benefit

The additional contentment or utility that comes from the consumption or production of an extra unit of a good or service.

Marginal Cost

The expense associated with manufacturing an extra unit of a product.

Tutoring

A form of education where an individual provides personalized instruction to a student or a small group of students.

Marginal Benefits

The incremental satisfaction received from the consumption of one additional unit of a good or service.