The production possibilities frontier for a country is usually drawn
A)as a straight line, sloping downward.
B)as a straight line, sloping upward.
C)bowed outward from the origin.
D)bowed inward toward the origin.
E)as a dotted line when sloping downward and as a full line when sloping upward.

Question

Quizplus · Accepted Answer

The production possibilities frontier is usually bowed outward from the origin because of the law of increasing opportunity cost. As a country produces more of one good, the opportunity cost of producing additional units of that good increases, so the curve becomes steeper as we move along it. This results in a bowed-out shape rather than a straight line.

The Production Possibilities Frontier for a Country Is Usually Drawn