The production possibilities frontier corresponding to the data in Table 2.1.1 is
A)negatively sloped and linear.
B)negatively sloped and bowed inward.
C)negatively sloped and bowed outward.
D)positively sloped and linear.
E)positively sloped and bowed outward.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is typically negatively sloped and bowed outward due to the law of increasing opportunity costs, which states that as production of one good increases, the opportunity cost of producing additional units of this good also increases.

The Production Possibilities Frontier Corresponding to the Data in Table