When the production possibilities frontier bows outward from the origin
A) some of society's resources are unemployed.
B) opportunity costs are constant.
C) opportunity costs are increasing.
D) opportunity costs are decreasing.

Question

Quizplus · Accepted Answer

When the production possibilities frontier (PPF) bows outward from the origin, it indicates increasing opportunity costs. This shape reflects the reality that, as you produce more of one good, you have to give up increasingly larger amounts of the other good, due to factors like resource specialization and inefficiencies in reallocating resources.

When the Production Possibilities Frontier Bows Outward from the Origin