The idea of increasing opportunity cost is reflected in the
A)positive slope of the production possibilities frontier.
B)bowed-out shape of the production possibilities frontier.
C)bowed-in shape of the production possibilities frontier.
D)fact that the PPF shows there are unattainable production points.
E)linear shape of the production possibilities frontier.

Question

Quizplus · Accepted Answer

The bowed-out shape of the production possibilities frontier reflects the idea of increasing opportunity cost. As we move along the curve, the opportunity cost of producing one good increases as we have to give up more and more of the other good. This is reflected in the increasing slope of the curve.

The Idea of Increasing Opportunity Cost Is Reflected in the