The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3
-Refer to Figure 1- 3. That the production possibilities boundaries are drawn concave to the origin reflects the
A) unfair distribution of resources in the economy.
B) constant opportunity cost of producing more of either good.
C) decreasing opportunity cost of producing more of either good.
D) increasing opportunity cost of producing more of either good.
E) scarcity of resources in the economy.

Question

The diagram below shows two production possibilities boundaries for Country X.  FIGURE 1- 3
-Refer to Figure 1- 3. That the production possibilities boundaries are drawn concave to the origin reflects the
A) unfair distribution of resources in the economy. 
B) constant opportunity cost of producing more of either good. 
C) decreasing opportunity cost of producing more of either good. 
D) increasing opportunity cost of producing more of either good. 
E) scarcity of resources in the economy.

Quizplus · Accepted Answer

The concave shape of the production possibilities boundaries implies that resources are not equally efficient in producing both goods, leading to increasing opportunity costs as more of either good is produced.

The Diagram Below Shows Two Production Possibilities Boundaries for Country