The Reason the Production Possibilities Curve Is Bowed Outward (Concave)

question 208

Multiple Choice

The reason the production possibilities curve is bowed outward (concave) is

• A) the law of increasing additional cost.
• B) that technology is constantly changing.
• C) that the number of resources is increasing.
• D) that the economy has more capital goods than entrepreneurial effort.

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Definitions:

Tariff Barriers

Taxes imposed on imported goods to protect domestic industries from foreign competition and raise government revenue.

Exploiting

Taking unfair advantage of a person, group, or situation for one's own benefit, often ethically or legally questionable.

Middle-Income DVCs

Developing countries that have achieved a certain level of GDP per capita, falling between low-income and high-income thresholds, if DVCs is taken to mean Developing Countries.

Farm Labor

The workforce engaged in agricultural activities, including planting, cultivating, and harvesting crops, as well as raising livestock.