The fact that individual productive resources are NOT equally useful in all activities
A) implies that a production possibilities frontier will be bowed outward.
B) implies that gain from specialization and trade is unlikely.
C) follows from the law of demand.
D) implies a linear production possibilities frontier.

Question

Quizplus · Accepted Answer

The fact that individual productive resources are not equally useful in all activities implies that a production possibilities frontier will be bowed outward. This is because resources are better suited for some productions than others, leading to increasing opportunity costs as production shifts from one good to another, which results in a bowed-out curve.

The Fact That Individual Productive Resources Are NOT Equally Useful