Some economies have production possibilities frontiers that are bowed inward toward the origin.

Question

Quizplus · Accepted Answer

The bowed inward shape of the production possibilities frontier indicates that the opportunity cost of producing one good increases as more of it is produced, due to the limited availability of resources with different abilities to produce different goods. Therefore, the production possibilities frontier is not a straight line and is bowed inward toward the origin.

Some Economies Have Production Possibilities Frontiers That Are Bowed Inward