Production Possibilities Curve Are Usually Bowed Outward

question 98

Multiple Choice

Production possibilities curve are usually bowed outward. This is because

• A) the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
• B) it reflects the fact that the opportunity cost of producing a good decreases as more and more of that good is produced.
• C) of the effects of technological change.
• D) resources are specialized, that is, some are better at producing particular goods rather than other goods.

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Definitions:

Wealth Gap

The uneven distribution of assets among residents of a particular country or the world, leading to significant disparities in wealth and economic status.

Misallocating

The improper or inefficient distribution or use of resources, often leading to suboptimal outcomes.

Multinational Corporations

Large companies that operate, produce, or sell goods and services in multiple countries beyond their home country.

Self-Reference Criterion

The tendency to use one's own cultural standards and experiences to judge and interpret the behavior and beliefs of people from other cultures.