Friday, July 8, 2011

The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that

ECONOMICS

Multiple Choice

The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that

a.it makes it easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line

b.early economists began drawing them in this way and the convention has continued throughout the years

c.output eventually reaches a maximum and then declines

d.resources are not perfectly adaptable to the production of all goods

e.the frontier will shift outward over time

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