The Production Possibilities Curve for Two Products Is Bowed Out

question 8

Multiple Choice

The production possibilities curve for two products is bowed out because

• A) as the production of a good increases, opportunity cost increases.
• B) as the production of a good increases, opportunity cost is unchanged.
• C) the qualities of the resources are not identical.
• D) there are unemployed resources.

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Definitions:

Jamestown Colony

The first permanent English settlement in North America, established in Virginia in 1607.

Forced Labor

Work that is performed involuntarily and under the menace of any penalty.

Colonial and European Merchants

Refers to traders and business people from Europe and the colonial Americas involved in the exchange of goods, such as textiles, spices, and slaves, between the 16th and 19th centuries.