The PPF between goods X and Y will be a downward-sloping
A) straight line if increasing opportunity costs exist.
B) straight line if decreasing opportunity costs exist.
C) curve that is bowed outward if increasing opportunity costs exist.
D) curve that is bowed outward if constant opportunity costs exist.

Question

Quizplus · Accepted Answer

A PPF between goods X and Y will be a curve that is bowed outward if increasing opportunity costs exist. This means that to produce more of one good, increasing amounts of the other good must be given up, resulting in a curve that is bowed outward, reflecting the increasing opportunity cost.

The PPF Between Goods X and Y Will Be a Downward-Sloping