For What Reason Are Production Possibilities Frontiers Usually Bowed Outward

question 75

Multiple Choice

For what reason are production possibilities frontiers usually bowed outward?

• A)The more resources a society uses to produce one good, the fewer resources it has available to produce another good.
• B)It reflects the fact that the opportunity cost of producing a good falls as one produces more and more of it.
• C)It is because of the effects of technological change.
• D)Resources are specialized, that is, some are better at producing particular goods rather than other goods.

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Definitions:

Labor-force Participation Rate

The percentage of the working-age population that is either employed or actively looking for employment.

Population Participation

Often referred to as the labor force participation rate, it measures the proportion of the working-age population that is employed or actively looking for employment.

Labor Force

The total number of people who are available to work, including those who are employed and those who are unemployed but seeking work.

Employed Category

Individuals who are working for pay or profit, actively engaged in a business or have a job from which they are temporarily absent.