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The Bowed Out (Concave) Shape of the Production Possibilities Curve

Question 38

Multiple Choice

The bowed out (concave) shape of the production possibilities curve implies that, as production of one good


A) decreases, production of other goods decreases as well.
B) increases, society must forgo decreasing amounts of another good.
C) increases, society must forgo increasing amounts of another good.
D) increases, society can obtain a free lunch.
E) increases, production of other goods increases as well.

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