A Bowed Out Ppf Reflects Which Of The Following Ideas? (Solution)

  • Which of the following notions is represented by a bowed out PPF? I. Increasing the potential cost of doing business Ii. resources are not equally productive in all activities
  • iii. the costs of products rise with time
  • and iv.

What does a bowed out production possibilities frontier show?

Which of the following notions is reflected by a bowed-out PPF: I. raising the opportunity cost of doing business. Ii. resources are not equally productive in all occupations, and iii. the prices of commodities rise with time.

Why are some production possibilities frontier bowed out quizlet?

In general, opportunity costs rise, and the border of production possibilities moves outward as a result. Why? Resources are not all created equal and are not equally beneficial in all activities. When it is impossible to produce one more unit of one product without simultaneously creating one fewer unit of another one.

Which of the following causes the production possibilities frontier to have a bowed out curved shape?

It is bent in shape as a result of the law of growing opportunity cost, which describes the concept that the more units of a product are produced, the less potential the economy has to generate other items.

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When the production possibilities frontier bows outward from the origin?

As a result, the production possibilities curve curves outward from the origin because opportunity costs rise as the amount of a thing being produced grows. Increased production of any one product is only possible when the economy is at full employment and full production, and only if the economy is also at full employment and full production of other items.

Why is the PPF concave?

In most cases, the form of a PPF is concave to the origin in order to depict growing opportunity cost as the output of a good increases. When a result, as one proceeds from the top left of the PPF to the bottom right of the PPF, the absolute size of MRT grows in magnitude.

When a production possibilities frontier is bowed outward the opportunity cost of one good?

The correct choice is a) rises in size. It is right since the notion of increasing opportunity cost indicates that if the production possibilities frontier bent outward and produced one more unit, the opportunity cost will climb in tandem with the increase in the number of units manufactured.

When a production possibilities frontier is bowed outward quizlet?

In the event that part of the economy’s resources are more suited to providing one good than another, the production possibilities frontier will be bent outward in that direction. It is absolute advantage that allows for the profits from specialization and international trade.

Why does a production possibilities frontier have to be downward sloping and have a bowed out shape?

There is a downward slope to the production possibilities curve, which indicates that there is a shortage of resources. The production possibilities curve has a bowed-out form as a result of allocating resources according to comparative advantage. An allocation in this manner suggests that the rule of growing opportunity cost will continue to hold true.

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Which of the following would shift the PPF outward?

Changes in the overall number of accessible production factors, as well as technological developments, can cause shifts in the PPF to move outward or inward, respectively. If the overall number of production components, such as labor and capital, rises, the economy will be able to generate more items at any point along the frontier, regardless of location.

Why is the PPC bow shaped quizlet?

Changing the overall number of accessible production components, as well as technological improvements, can cause shifts in the PPF to move outward or inward. In other words, if the overall number of production components such as labor and capital rises, the economy will be able to generate more things at any point along its frontier.

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