In Terms of the Production Possibilities Diagram, the Principle of Increasing

question 81

Multiple Choice

In terms of the production possibilities diagram, the principle of increasing cost simply asserts that the frontier is

• A)downward sloping.
• B)upward sloping.
• C)bowed inward.
• D)bowed outward.
• E)undefined, because no market will exist in this case.

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Definitions:

International Specializations

The phenomenon where countries focus on the production and export of goods and services that they can produce efficiently and trade for what they cannot produce as efficiently.

Petroleum Industry

An industry that deals with the exploration, extraction, refining, transporting, and marketing of petroleum products.

Intensive Crop Cultivation

A farming practice that aims to maximize agricultural output per acre through the use of modern agricultural techniques and inputs like fertilizers, pesticides, and irrigation.

Plows

Agricultural tools used for tilling the soil, preparing it for sowing seeds by turning over the upper layer.