The production possibility frontier is bowed out because:
A)resources are not equally suited for the production of both goods.
B)resources are scarce.
C)economic growth leads to inefficiency.
D)resources are inefficiently used.

Question

Quizplus · Accepted Answer

The production possibility frontier is bowed out because of the differences in resources' suitability for the production of different goods. Some resources are better suited for the production of certain goods, while others are better suited for the production of other goods, resulting in a bowed-out shape of the production possibility frontier.

The Production Possibility Frontier Is Bowed Out Because