Since resources are not equally substitutable across uses:
A)the production possibilities curve will be positively sloped.
B)the production possibilities curve will be a straight line.
C)the production possibilities curve will be bowed outward.
D)the production possibilities curve will be bowed inward.

Question

Since resources are not equally substitutable across uses:
A)​the production possibilities curve will be positively sloped.
B)​the production possibilities curve will be a straight line.
C)​the production possibilities curve will be bowed outward.
D)​the production possibilities curve will be bowed inward.

Quizplus · Accepted Answer

Resources are not equally substitutable across uses, which means that some resources are better suited for producing certain goods than others. This leads to a production possibilities curve that is bowed outward, as the opportunity cost of producing more of one good increases as more resources are shifted away from producing other goods.

Since Resources Are Not Equally Substitutable Across Uses