A Country's Production Possibilities Curve Is Concave to the Origin

question 75

Multiple Choice

A country's production possibilities curve is concave to the origin (i.e. ,bowed out from the origin) because

• A) of the principle of scarcity.
• B) the production of one good is expanded by first employing those resources with an absolute advantage.
• C) the production of one good is expanded by first employing those resources with the lowest opportunity cost.
• D) there is a trade off that requires a decrease in the production of one good in order to increase the production of the other good.
• E) of the principle of absolute advantagE.