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

Question

Quizplus · Accepted Answer

A bowed out production possibility frontier (PPF) indicates increasing opportunity cost, where producing additional units of one good requires giving up more and more units of another good. This is consistent with the scenario presented in the question, where increasing amounts of good X must be sacrificed for each additional unit of good Y produced.

If an Economy Has to Sacrifice Increasing Amounts of Good