The Typical Concave (I

question 142

True/False

The typical concave (i.e., bowed-out)shape of the production possibilities frontier reflects the law of increasing opportunity cost.

---

Definitions:

Law Of Increasing Cost

An economic principle that states as production of a good expands, reflecting increased demand or supply shifts, the cost of producing an additional unit of output increases.

Butter

A dairy product made from churning milk or cream, widely used as a spread and in cooking.

Gun Makers

Companies or individuals involved in the manufacturing of firearms.

American Economy

The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.