The idea of increasing opportunity cost is reflected in the
A)bowed out shape of the production possibilities frontier.
B)fact that the PPF shows there are unattainable production points.
C)positive slope of the production possibilities frontier.
D)linear shape of the production possibilities frontier.
E)bowed in shape of the production possibilities frontier.

Question

Quizplus · Accepted Answer

The bowed out shape of the production possibilities frontier (PPF) reflects increasing opportunity costs, as resources are not equally efficient in producing all goods, leading to higher costs when reallocating resources.

The Idea of Increasing Opportunity Cost Is Reflected in the