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David Ronnel
on Oct 26, 2024

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(Figure: Guns and Butter) Use Figure: Guns and Butter.This production possibility frontier is:

A) bowed out because of increasing opportunity costs.
B) bowed in because of increasing opportunity costs.
C) bowed in because of constant costs of guns and butter.
D) linear because of constant costs.

Production Possibility Frontier

A graph that shows all the highest possible production levels for two products, based on available resources and technological capabilities.

Increasing Opportunity Costs

The concept that the cost of forgoing the next best alternative increases as resources become more specialized in production.

  • Understand the concept of rising opportunity cost and how it is illustrated through the Production Possibility Curve.
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kennitra hagoodOct 31, 2024
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