As a country that has a bowed-out production possibilities frontier produces more of one good, the opportunity cost of a unit of that good
A) might increase or decrease.
B) remains the same.
C) increases.
D) decreases.

Question

Quizplus · Accepted Answer

A bowed-out production possibilities frontier indicates increasing opportunity costs as more of one good is produced, which aligns with choice C. This is because resources are not equally efficient in producing all goods, so as production shifts towards one good, less efficient resources are used, increasing the opportunity cost.

As a Country That Has a Bowed-Out Production Possibilities Frontier