The presence of increasing opportunity costs gives rises to production possibilities schedules that are
A) downward-sloping straight lines
B) upward-sloping straight lines
C) bowed outward from the diagram's origin
D) bowed inward toward the diagram's origin

Question

Quizplus · Accepted Answer

Bowed outward production possibilities schedules demonstrate that as more of one good is produced, the opportunity cost of producing the other good increases at an increasing rate. This is often the case in real-world scenarios, as resources are not equally suited to producing all goods and services. As a result, increasing the production of one good requires sacrificing increasing amounts of the production of another good.

The Presence of Increasing Opportunity Costs Gives Rises to Production