Why Does the Production Possibilities Frontier Have a Bowed Out

question 216

Essay

Why does the production possibilities frontier have a bowed out shape rather than being a straight line?

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Definitions:

DAX

The stock market index that represents 40 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange.

Nikkei

A redefinition: A major stock market index in Japan, tracking the performance of top-performing companies and serving as a barometer for the Japanese economy.

Hang Seng

The Hang Seng Index is a freefloat-adjusted market-capitalization-weighted stock-market index in Hong Kong, used to record and monitor daily changes of the largest companies of the market.

Repurchase Agreements

Short-term loans where securities are sold with an agreement to repurchase them at a higher price at a future date, often used for raising short-term capital.