If an economy experiences increasing opportunity costs with respect to two goods,then the production possibilities curve between the two goods will be
A)Bowed outward or concave from below.
B)A straight,downward-sloping line.
C)Bowed inward or convex from below.
D)Bowed outward until the two goods are equal,and then bowed inward.

Question

Quizplus · Accepted Answer

Increasing opportunity costs mean that in order to produce more of one good, increasingly larger amounts of the other good must be given up. This results in a bowed-outward or concave production possibilities curve, as resources are not equally efficient in producing both goods. As more of one good is produced, resources that are less efficient in producing that good are shifted away from the production of the other good, resulting in increasing opportunity costs.

If an Economy Experiences Increasing Opportunity Costs with Respect to Two