A realistic production possibilities curve is _____, while a simple production possibilities curve _____.
A) bowed outward; has constant opportunity costs.
B) straight; has constant opportunity costs.
C) straight; bows outward.
D) bowed outward has increasing opportunity costs.

Question

Quizplus · Accepted Answer

A realistic production possibilities curve is bowed outward because resources are not perfectly adaptable to alternative uses, leading to increasing opportunity costs as more of one good is produced. A simple production possibilities curve is straight and assumes constant opportunity costs, which is not always the case in real-world scenarios.

A Realistic Production Possibilities Curve Is _____, While a Simple