Asked by Johnny Guittard on Jul 27, 2024
Verified
Economists believe that production possibilities frontiers rarely have a bowed shape.
Bowed Shape
A curve representing the relationship between two variables where the curve slopes outward, commonly used to describe certain types of economic functions.
Production Possibilities Frontiers
A figure that depicts the absolute maximum production capacities for two goods, based on a set of inputs that consist of resources and various additional components.
- Examine the causes and significances of variations and profiles in the production possibilities curve.
Verified Answer
IA
Isaac AjeletiJul 29, 2024
Final Answer :
False
Explanation :
Economists often illustrate production possibilities frontiers (PPFs) with a bowed-outward shape to reflect increasing opportunity costs. As production shifts from one good to another, more and more resources are required to increase production of the second good, leading to a bowed shape.
Learning Objectives
- Examine the causes and significances of variations and profiles in the production possibilities curve.