If resources are better suited toward the production of one good than toward another good, then the PPF for those two goods is
A)a straight line.
B)bowed outward.
C)upward sloping.
D)a vertical line.

Question

Quizplus · Accepted Answer

If resources are better suited toward the production of one good than another, it means that the opportunity cost of producing the first good is lower than the opportunity cost of producing the other. This leads to a bowed outward shape of the PPF as we move along the curve, indicating increasing opportunity costs of production.

If Resources Are Better Suited Toward the Production of One