Asked by Parker Elliott on Jul 30, 2024

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When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Bowed Outward

Describes a curve on a graph, typically a production possibility frontier, indicating increasing opportunity costs when shifting resources between two goods.

Opportunity Cost

The cost of choosing one option over another, typically the best alternative forgone as a result of making a decision.

  • Uncover the origins and effects of movements and outlines in the production possibilities frontier.
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Natalie DeniseAug 05, 2024
Final Answer :
True
Explanation :
This is because a bowed-outward production possibilities frontier (PPF) indicates increasing opportunity costs. As more of the second good is produced, more of the first good must be given up, reflecting the principle of increasing opportunity costs.