When the production possibilities curve is bowed out, resources are
A) equally well-suited to production of both goods.
B) not being used efficiently.
C) not equally suited to the production of both goods.
D) available in larger and larger quantities as more of one good is produced.

Question

Quizplus · Accepted Answer

A bowed-out production possibilities curve indicates increasing opportunity costs, which means resources are not equally suited to the production of both goods.

When the Production Possibilities Curve Is Bowed Out, Resources Are