The existence of increasing opportunity cost
A)explains why specialization is frequently useful.
B)explains why resources are scarce.
C)explains the bowed-out shape of the production possibilities frontier.
D)follows from the existence of property rights.
E)explains why some societies produce inside their production possibilities frontier.

Question

Quizplus · Accepted Answer

Increasing opportunity cost means that in order to produce more of one good, we must give up increasing amounts of another good. This is reflected in the bowed-out shape of the production possibilities frontier, as it shows the trade-offs between producing different goods.

The Existence of Increasing Opportunity Cost