A bowed out PPF reflects which of the following ideas?
i. increasing opportunity cost
ii. resources are not equally productive in all activities
iii. prices of goods increase over time
A)i, ii, and iii
B)i and iii
C)i and ii
D)i only
E)ii and iii

Question

A bowed out PPF reflects which of the following ideas?
i. increasing opportunity cost
ii. resources are not equally productive in all activities
 iii. prices of goods increase over time
A)i, ii, and iii
B)i and iii
C)i and ii
D)i only
E)ii and iii

Quizplus · Accepted Answer

A bowed out PPF (Production Possibility Frontier) indicates increasing opportunity costs and that resources are not equally productive in all activities. As more of one good is produced, increasingly larger amounts of the other good must be given up, reflecting these concepts.

A Bowed Out PPF Reflects Which of the Following Ideas