A bowed out PPF reflects which of the following ideas?
i.increasing opportunity cost
ii.resources are not equally productive in all activities
iii.prices of goods increase over time
A) i only
B) i and ii
C) i and iii
D) ii and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

A bowed out PPF reflects increasing opportunity cost (i) because as you produce more of one good, you have to give up increasingly larger amounts of the other good, and resources are not equally productive in all activities (ii) because the PPF is bowed outwards indicating that some resources are better suited to producing one good over the other. The PPF does not reflect prices of goods increasing over time (iii).

A Bowed Out PPF Reflects Which of the Following Ideas