The Production Possibility Curve Is Bowed Outward from the Origin

question 84

Multiple Choice

The production possibility curve is bowed outward from the origin because of:

• A) the law of increasing opportunity costs.
• B) the finite nature of the resource base.
• C) inefficiency.
• D) unemployment.

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Definitions:

World Price

The international market price of a good, influenced by global supply and demand conditions.

Merchandise Trade

International trade in goods as opposed to services, including both exports and imports of physical products.

Tangible Products

Physical items that can be touched, seen, and measured, such as electronics, clothing, and furniture.

Intangibles

Non-physical assets such as patents, copyrights, brand recognition, and goodwill that have value but are not physical objects.