Because of increasing opportunity costs, the production possibility curve:
A) Is bowed out from (or concave to) the origin
B) Can be either downward- or upward-sloping
C) At first rises, then falls eventually
D) Is a straight downward-sloping line

Question

Quizplus · Accepted Answer

As production of one good increases, more and more units of the other good must be given up, resulting in increasing opportunity costs. This leads to a bowed out (concave) production possibility curve.

Because of Increasing Opportunity Costs, the Production Possibility Curve