The Production Possibilities Curve for Capital and Consumer Goods Is

question 48

Multiple Choice

The production possibilities curve for capital and consumer goods is concave to the origin because:

• A)of decreasing opportunity costs of production.
• B)resources are not perfectly adaptable to the production of both goods.
• C)both consumer goods and capital goods equally contribute to economic growth.
• D)the level of technology along the frontier is assumed to vary.
• E)of constant returns to scale.

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