Figure 2.2
-Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The figure shows that the production possibilities curve is:

Question

Quizplus · Accepted Answer

The production possibilities curve is typically bowed outward due to the law of increasing opportunity costs, which states that as production of one good increases, the opportunity cost of producing an additional unit of this good also increases.

Figure 2.2 -Figure 2.2 Presents a Production Possibilities Curve for a Country