The fact that individual productive resources are NOT equally useful in all activities
A) implies a linear production possibilities frontier.
B) follows from the law of demand.
C) implies that a production possibilities frontier will be bowed outward.
D) implies that gain from specialization and trade is unlikely.

Question

Quizplus · Accepted Answer

The fact that individual productive resources are not equally useful in all activities implies that some resources are better suited for certain tasks than others, leading to different levels of productivity depending on how they are allocated. This results in a bowed outward production possibilities frontier, as certain combinations of goods will require different amounts of each resource, and will therefore have different levels of efficiency and productivity.

The Fact That Individual Productive Resources Are NOT Equally Useful