The statement "Resources employed in producing X are better suited to making Y" is another way of saying
A)the production possibilities frontier is "bowed out."
B)the production possibilities frontier is a straight line.
C)the production possibilities frontier is "bowed in."
D)resources are unproductive.
E)resources have no opportunity cost.

Question

Quizplus · Accepted Answer

This statement implies that resources are not equally efficient in producing all goods, leading to an increasing opportunity cost as production shifts from one good to another. This situation is represented by a "bowed out" production possibilities frontier, indicating that to produce more of one good, increasingly larger amounts of the other good must be given up, reflecting the varying suitability of resources for different productions.

The Statement "Resources Employed in Producing X Are Better Suited