A nation's production possibilities curve is bowed out from the origin because: A. resources are not equally efficient in producing every good. B. the originator of the idea drew it this way and modern economists follow this convention. C. resources are scarce. D. wants are virtually unlimited

Question

Carissa Fritz

Business

15 March, 19:22

A nation's production possibilities curve is bowed out from the origin because: A. resources are not equally efficient in producing every good. B. the originator of the idea drew it this way and modern economists follow this convention. C. resources are scarce. D. wants are virtually unlimited

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Answers (2)

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Kael Rose · Answer 1

A. resources are not equally efficient in producing every good.

Explanation:

PPC is the combination of goods that an economy can produce, given resources & technology.

It is downward sloping because two goods quantities are inversely related, as one good's production can be increased by decreasing production of other good - given same resources & technology.

Resources are not equally efficient in production of two resources. Shift from one (efficient) good to other (inefficient) occurs with increasing Marginal Opportunity Cost - i. e more & more units of good sacrifised for gaining an additional unit of other good. This : change in good sacrifised / change in good gained - is the slope of PPC & it being increasing, makes PPC concave (outward bending) from origin.

Cookie · Answer 2

A. resources are not equally efficient in producing every good.

Explanation:

The nation's production possibility curve is generally bowed out form the original due to the resource of each and every country is not equal and is not efficient in the production of each and every good and service. And the resources are not shift-able within the production of any two type of goods, as this depends on the availability of the resources.