-A PPF, such as the one above, that bows outward illustrates
A) that productivity is falling.
B) that technology is improving.
C) increasing opportunity cost.
D) decreasing opportunity cost.

Question

-A PPF, such as the one above, that bows outward illustrates
A) that productivity is falling. 
B) that technology is improving. 
C) increasing opportunity cost. 
D) decreasing opportunity cost.

Quizplus · Accepted Answer

A PPF that bows outward indicates increasing opportunity cost, meaning that as more of one good is produced, larger amounts of the other good must be sacrificed.

-A PPF, Such as the One Above, That Bows Outward