Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow. Figure 2.1
-Refer to Figure 2.1. The shape of Macroland's production possibility frontier shows
A) increasing opportunity costs.
B) constant opportunity costs.
C) decreasing opportunity costs.
D) random opportunity costs.

Question

Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.  Figure 2.1
-Refer to Figure 2.1. The shape of Macroland's production possibility frontier shows
A) increasing opportunity costs. 
B) constant opportunity costs. 
C) decreasing opportunity costs. 
D) random opportunity costs.

Quizplus · Accepted Answer

The shape of Macroland's production possibility frontier is concave to the origin, indicating increasing opportunity costs. As production shifts from one good to another, more and more of the first good must be given up to produce additional units of the second good.

Refer to the Information Provided in Figure 2