Any movement along a bowed-out production possibilities frontier involves the production of:
A)more of both goods.
B)more of one good and less of the other.
C)less of both goods.
D)more resources.
E)better technology.

Question

Quizplus · Accepted Answer

If the production possibilities frontier is bowed-out, this means that the opportunity cost of producing one good increases as more of it is produced. Therefore, any movement along the production possibilities frontier will involve a tradeoff between the two goods. To produce more of one good, the production of the other good must decrease. Therefore, the answer is B: more of one good and less of the other.

Any Movement Along a Bowed-Out Production Possibilities Frontier Involves the Production