As a country that has a bowed- out production possibilities frontier produces more of one good, the opportunity cost of a unit of that good .
A) increases
B) remains the same
C) decreases
D) might increase or decrease

Question

Quizplus · Accepted Answer

When a country has a bowed-out production possibilities frontier, it means that the opportunity cost of producing one good increases as more of that good is produced. Thus, the answer is A) increases.

As a Country That Has a Bowed- Out Production Possibilities