A PPF is bowed outward as a result of
A) constant opportunity costs.
B) increasing opportunity costs.
C) decreasing opportunity costs.
D) scarcity.
E) choice.

Question

Quizplus · Accepted Answer

A PPF is bowed outward when there are increasing opportunity costs. This occurs because resources are not equally efficient in producing all goods and services, so as more of a good is produced, increasingly more of the alternative good must be given up. This results in a concave shape of the PPF.

A PPF Is Bowed Outward as a Result of