The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn
A)bowed outward.
B)bowed inward.
C)as a straight line (but not horizontal).
D)as a horizontal straight line.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) is typically drawn as bowed outward to reflect the increasing opportunity costs that arise because resources are not perfectly adaptable to the production of all goods. As more of one good is produced, resources less suited to its production must be used, increasing the opportunity cost and resulting in the outward bow shape.

The Fact That Resources Tend to Be Specialized Is One