The fact that resources are not equally productive in all activities
A)implies that a production possibilities frontier will be bowed outward.
B)implies that gains from specialization and trade are unlikely.
C)follows from the law of demand.
D)implies a linear production possibilities frontier.
E)implies that an economy should not produce certain goods.

Question

Quizplus · Accepted Answer

The fact that resources are not equally productive in all activities means that some resources are better suited for certain production activities than others. This leads to the production possibilities frontier being bowed outward, as some resources are more efficient at producing certain goods and services than others.

The Fact That Resources Are Not Equally Productive in All