If an economy has to sacrifice increasing amounts of good X for each additional unit of good Y produced, then its production possibilities curve is:
A) bowed out from the origin.
B) bowed in toward the origin.
C) a straight line.
D) a vertical line.

Question

Quizplus · Accepted Answer

This scenario describes the law of increasing opportunity costs, which states that as the production of one good increases, the opportunity cost of producing an additional unit of the other good increases. This results in a production possibilities curve that is bowed out from the origin.

If an Economy Has to Sacrifice Increasing Amounts of Good