The Production Possibilities Curve for Two Products Is Bowed Out

question 8

Multiple Choice

The production possibilities curve for two products is bowed out because

• A) as the production of a good increases, opportunity cost increases.
• B) as the production of a good increases, opportunity cost is unchanged.
• C) the qualities of the resources are not identical.
• D) there are unemployed resources.

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Definitions:

Unrealized Profits

Profits that have been earned but not yet realized through a transaction, often related to investments that have increased in value but have not been sold.

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Accounting Information

Data related to the financial transactions and status of an individual, business, or organization, used for reporting and decision-making purposes.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company’s financial performance.