The Difference Between Production Possibilities Frontiers That Are Bowed Out

question 209

Multiple Choice

The difference between production possibilities frontiers that are bowed out and those that are straight lines is that

• A)bowed-out production possibilities frontiers apply to economies that face tradeoffs, whereas straight-line production possibilities frontiers apply to economies that do not face tradeoffs.
• B)bowed-out production possibilities frontiers apply to economies in which resources are not specialized, whereas straight-line production possibilities frontiers apply to economies in which resources are specialized.
• C)bowed-out production possibilities frontiers illustrate increasing opportunity cost, whereas straight-line production possibilities frontiers illustrate constant opportunity cost.
• D)straight-line production possibilities frontiers illustrate real-world conditions, whereas bowed-out production possibilities frontiers illustrate more simplistic assumptions.

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Definitions:

Losses

The negative financial impact that occurs when expenses exceed revenues, or due to unforeseen events or damages.

Mutual Mistake

An error shared by all parties in a contract, leading to a misunderstanding regarding a fundamental fact or element of the agreement.

Fraud

Deliberate deception or misrepresentation intended to result in an unfair or unlawful gain.

Reformation

A legal remedy where a written agreement is officially corrected or amended to accurately reflect the true intentions of the parties involved.