The Bowed-Outward Shape of a PPF

question 297

Multiple Choice

The bowed-outward shape of a PPF

• A) is due to capital accumulation.
• B) reflects the unequal application of technology in production.
• C) illustrates the fact that no opportunity cost is incurred for increasing the production of the good measured on the horizontal axis but it is incurred to increase production of the good measured along the vertical axis.
• D) is due to the existence of increasing opportunity cost.

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Definitions:

Decision-making

The process of choosing the best alternative for reaching objectives.

Organization

An entity composed of multiple people working together towards common goals or objectives, structured to coordinate their activities.

Differentiation

A strategy or process of distinguishing a product, service, or brand from others in the market to create a competitive advantage or appeal to a specific target audience.

Complexity

The degree to which a system or process has multiple components that are interconnected and which require careful consideration or analysis.