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.

---

Definitions:

Great Recession

A severe global economic downturn that took place from late 2007 through mid-2009.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on low-income earners compared to high-income earners.

Social Security Benefits

Social Security Benefits are payments made to eligible individuals, including retirees, disabled persons, and survivors, funded by social security taxes.

Transfer Payment

Money distributed by the government to individuals without any requirement for those individuals to provide goods or services in return.