The typical production possibilities curve is
A) an upsloping line that is bowed out from the origin.
B) a downsloping line that is bowed in toward the origin.
C) a downsloping line that is bowed out from the origin.
D) a straight upsloping line.

Question

Quizplus · Accepted Answer

The typical production possibilities curve (PPC) is a downsloping line that is bowed out from the origin. This is because of the law of increasing opportunity costs, which states that as you produce more of one good, the opportunity cost of producing an additional unit of that good increases, resulting in a bowed-out curve.

The Typical Production Possibilities Curve Is