Employees at Bank of America are good at providing banking services and workers at Ben & Jerry's are good at making ice cream. If some bankers are moved to making ice cream, we get a small increase in the amount of ice cream produced and a large decrease in the amount of banking services provided. If the PPF has banking services on the vertical axis and ice cream on the horizontal axis, the effect of the change reflects

Question

Quizplus · Accepted Answer

A bowed out PPF reflects increasing opportunity costs, which is consistent with the scenario where moving bankers to ice cream production results in a large decrease in banking services and only a small increase in ice cream production.

Employees at Bank of America Are Good at Providing Banking