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The Bowed-Out Shape of the Production Possibilities Frontier Indicates Increasing

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The bowed-out shape of the production possibilities frontier indicates increasing opportunity costs.


Definitions:

Sampled Population

The subset of individuals or items selected from the entire population for the purpose of statistical analysis.

Population Mean

The average value of all the members of a population.

P-Value

The probability of observing results at least as extreme as those in a data set, given that the null hypothesis is true.

Hypothesis Testing

A statistical method used to decide whether a hypothesis about a parameter in a population is supported by the data gathered from a sample.

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