If opportunity costs are increasing, then the production possibilities frontier is
A)a vertical line.
B)bowed outward with a negative slope.
C)a negatively sloped straight line.
D)a positively sloped straight line.
E)bowed outward with a positive slope.

Question

Quizplus · Accepted Answer

If opportunity costs are increasing, it means that as more of one good is produced, the opportunity cost of producing an additional unit of that good increases. This leads to a bowed outward shape of the production possibilities frontier, which represents the trade-offs between producing two goods. The negative slope of the curve indicates that as more of one good is produced, the production of the other good must decrease, resulting in an increasing opportunity cost. therefore, option B is the correct choice.

If Opportunity Costs Are Increasing, Then the Production Possibilities Frontier