A nation's production possibilities curve is bowed out from the origin because
A)resources are not generally equally efficient in producing every good.
B)opportunity costs of producing a good tend to fall as more of the good is produced.
C)resources are scarce.
D)wants are virtually unlimited.

Question

Quizplus · Accepted Answer

The production possibilities curve is bowed out from the origin because resources are not equally efficient in producing every good, leading to increasing opportunity costs as more of one good is produced.

A Nation's Production Possibilities Curve Is Bowed Out from the Origin