The Bowed-Out Shape of the Production Possibilities Frontier Can Be

question 177

Multiple Choice

The bowed-out shape of the production possibilities frontier can be explained by the fact that

• A)scarcity is a fact of life.
• B)economic growth is always occurring.
• C)the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.
• D)an assumption that is made in constructing a production possibilities frontier is that tradeoffs are unimportant.

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Definitions:

Freedom from Other People

The condition or state of being free or independent from the influence, control, or determination of others.

Rational Freedom

The capacity to make decisions based on reason rather than compulsion, allowing individuals to act in accordance with their own rational interests.

Carefully Planned

Something that has been thought through with great attention to detail and organized in advance.

Heisenberg Principle

The Heisenberg Principle, or Uncertainty Principle, states that the position and velocity of an object cannot both be measured exactly, simultaneously, even in theory.