Production Possibilities Curves for Large Economies Are Generally Bow-Shaped Because

question 145

Multiple Choice

Production possibilities curves for large economies are generally bow-shaped because:

• A)specialization gives some producers a comparative advantage.
• B)opportunity costs tend to decrease with increases in production.
• C)opportunity costs tend to increase with increases in production.
• D)as more resources are used to produce a good, those resources become less expensive.

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Definitions:

Articles of Confederation

The first constitution of the United States, in effect from 1781 to 1789, which established a national government with limited powers and was eventually replaced by the U.S. Constitution.

Independent Source of Revenue

Income that is generated independently from the main or traditional sources, often implying diversification of funding streams.

Foreign Affairs

Governmental policies and strategies dealing with other nations, including diplomacy, trade negotiations, and international agreements.

Constitution of the United States

The supreme law of the United States, comprising seven articles that delineate the national frame of government.