Figure 3-2 -In Figure 3-2, the Production Possibilities Frontier Has a Bowed-Out

question 97

Multiple Choice

Figure 3-2
-In Figure 3-2, the production possibilities frontier has a bowed-out shape because of the law of

• A)decreasing costs.
• B)increasing costs.
• C)demand.
• D)comparative advantage.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology.

Demand Characteristics

Subtle cues or signals in an experiment that communicate to participants how they are expected to behave or respond.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is greater than the objective accuracy of those judgments.

Social Desirability Bias

The tendency of respondents to answer questions in a manner that will be viewed favorably by others, often skewing the results of surveys and studies.