In the Two­sector (Manufacturing and Agriculture)

question 36

Multiple Choice

In the two­sector (manufacturing and agriculture)
Specific­factors model, diminishing returns to labor
Implies:

• A)that the country's production possibilities frontier is linear (a straight line).
• B)that the country's production possibilities frontier is concave to the origin (bowed out from the origin).
• C)that the country's production possibilities frontier is convex from the origin (bowed in toward the origin).
• D)that the country's production possibilities frontier may be either concave to or convex from the origin.