The production possibilities frontier between two normal goods and services is typically bowed out or concave to the origin because:
A)society must give up one good to get more of the other.
B)consumers do not want too much of either good.
C)government restrictions place limits on the production of certain goods.
D)consumers want as much of both goods as possible.
E)the resources used to produce goods and services are not equally suited to the production of both goods.

Question

Quizplus · Accepted Answer

The production possibilities frontier is bowed out because the resources used to produce goods and services are not equally suited to the production of both goods. This means that the opportunity cost of producing more of one good increases as more of that good is produced, leading to a concave shape of the production possibilities frontier.

The Production Possibilities Frontier Between Two Normal Goods and Services