Asked by
Daisy Vidovich
on Nov 05, 2024
Verified
Refer to Figure 2.1. Macroland's production possibility frontier is bowed out from the origin due to
A) decreasing opportunity costs.
B) trade.
C) unemployment.
D) specialized resources.
Production Possibility Frontier
A curve depicting all maximum output possibilities for two or more goods, given a set of inputs and technology, assuming efficient use of resources.
Decreasing Opportunity Costs
A situation where the cost of forgoing the next best alternative decreases as more units of a product are produced.
- Investigate the structure of the Production Possibility Frontier to deduce its significance in terms of opportunity costs, namely if they are fixed, increase, or decrease.
Verified Answer
KK
Learning Objectives
- Investigate the structure of the Production Possibility Frontier to deduce its significance in terms of opportunity costs, namely if they are fixed, increase, or decrease.