The Concavity or Bowed-Out Shape of the Production Possibilities Frontier

question 228

Multiple Choice

The concavity or bowed-out shape of the production possibilities frontier is the result of

• A)the law of downward-sloping demand.
• B)the law of upward-sloping demand.
• C)the principle of increasing cost.
• D)complementarity in consumption.

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Definitions:

Bushels

A measure of volume commonly used in agriculture, particularly in the United States, for crops like wheat, corn, and soybeans.

Absolute Advantage

The ability of an entity to produce more of a good or service than competitors using the same amount of resources.

Opportunity Cost

The cost of foregone alternatives when a choice is made, represented by the benefits that could have been received by choosing the next best alternative.

Soybeans

Refers to a type of legume native to East Asia, widely grown for its edible bean which has numerous uses.