Why Are Production Possibilities Frontiers Usually Bowed Outward

question 171

Multiple Choice

Why are production possibilities frontiers usually bowed outward?

• 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 falls as one produces more and more of it.
• C)It is because 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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