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Which of the following explain why a production possibilities frontier would be bowed outward?
Increasing opportunity costs of producing more goods
Constant opportunity costs of producing more goods
Decreasing opportunity costs of producing more goods
Increasing and then decreasing opportunity costs of producing more goods
None of the other answers
Explanation
The bowed-outward shape of the PPF represents increasing opportunity costs of production because it indicates that it is becoming more and more costly to produce the good on the x-axis. This higher cost is represented by the increasingly steep slope of the PPF. The slope of the PPF corresponds to the costs of producing an extra unit of X. The steeper the slope, the steeper the cost.
Which of the following explain why a production possibilities frontier would be bowed outward?
Increasing opportunity costs of producing more goods
Constant opportunity costs of producing more goods
Decreasing opportunity costs of producing more goods
Increasing and then decreasing opportunity costs of producing more goods
None of the other answers
Explanation
The bowed-outward shape of the PPF represents increasing opportunity costs of production because it indicates that it is becoming more and more costly to produce the good on the x-axis. This higher cost is represented by the increasingly steep slope of the PPF. The slope of the PPF corresponds to the costs of producing an extra unit of X. The steeper the slope, the steeper the cost.
Which of the following explanations best represent the concept of opportunity costs?
It is the cost of the next best alternative that could be pursued with the resources used to produce a good
It is the sum of all explicit and implicit costs in all of the alternatives foregone to produce the good
It includes the explicit costs included in the production of a good, which include all the payments made to the factors of production.
It is the sum of all the implicit costs represented in all the alternative opportunities foregone in the production of a good
None of the other options
Explanation
The definition of the opportunity cost is the value of the highest valued alternative that is foregone in the production of a good. It is not the sum of all the alternative options, but rather only the most highly valued one.
Which of the following explain why a production possibilities frontier would be bowed outward?
Increasing opportunity costs of producing more goods
Constant opportunity costs of producing more goods
Decreasing opportunity costs of producing more goods
Increasing and then decreasing opportunity costs of producing more goods
None of the other answers
Explanation
The bowed-outward shape of the PPF represents increasing opportunity costs of production because it indicates that it is becoming more and more costly to produce the good on the x-axis. This higher cost is represented by the increasingly steep slope of the PPF. The slope of the PPF corresponds to the costs of producing an extra unit of X. The steeper the slope, the steeper the cost.
Which of the following explanations best represent the concept of opportunity costs?
It is the cost of the next best alternative that could be pursued with the resources used to produce a good
It is the sum of all explicit and implicit costs in all of the alternatives foregone to produce the good
It includes the explicit costs included in the production of a good, which include all the payments made to the factors of production.
It is the sum of all the implicit costs represented in all the alternative opportunities foregone in the production of a good
None of the other options
Explanation
The definition of the opportunity cost is the value of the highest valued alternative that is foregone in the production of a good. It is not the sum of all the alternative options, but rather only the most highly valued one.
Which of the following explain why a production possibilities frontier would be bowed outward?
Increasing opportunity costs of producing more goods
Constant opportunity costs of producing more goods
Decreasing opportunity costs of producing more goods
Increasing and then decreasing opportunity costs of producing more goods
None of the other answers
Explanation
The bowed-outward shape of the PPF represents increasing opportunity costs of production because it indicates that it is becoming more and more costly to produce the good on the x-axis. This higher cost is represented by the increasingly steep slope of the PPF. The slope of the PPF corresponds to the costs of producing an extra unit of X. The steeper the slope, the steeper the cost.
Which of the following explanations best represent the concept of opportunity costs?
It is the cost of the next best alternative that could be pursued with the resources used to produce a good
It is the sum of all explicit and implicit costs in all of the alternatives foregone to produce the good
It includes the explicit costs included in the production of a good, which include all the payments made to the factors of production.
It is the sum of all the implicit costs represented in all the alternative opportunities foregone in the production of a good
None of the other options
Explanation
The definition of the opportunity cost is the value of the highest valued alternative that is foregone in the production of a good. It is not the sum of all the alternative options, but rather only the most highly valued one.
Which of the following best explains why a production possibilities frontier would have increasing opportunity costs as we move along its length?
The resources/factors of production become less and less suitable for the new production mix
It is generally more costly for a country to produce capital goods witha fixed number of resources
It is generally more costly for a country to produce consumer goods with a fixed number of resources
Moving along the production possibilities frontier requires an increase in the resources available to a country
None of the other answers
Explanation
The increasing opportunity costs as you move along a PPF are a result of the resources that are more specialized in the production of one good being used to produce the other good. These resources become less and less productive leading to higher costs. If the two goods are cars and burgers, the more burgers you start to make, the more car mechanics you have to start using to make these burgers (since your resources are fixed). The less productive car mechanics (that is, in the production of burgers) will lead to higher production costs. This is due to the fact that they will earn the same hourly wage as the burger specialists, but produce fewer burgers per hour. The cost of burger production progressively goes up.
Which of the following best explains why a production possibilities frontier would have increasing opportunity costs as we move along its length?
The resources/factors of production become less and less suitable for the new production mix
It is generally more costly for a country to produce capital goods witha fixed number of resources
It is generally more costly for a country to produce consumer goods with a fixed number of resources
Moving along the production possibilities frontier requires an increase in the resources available to a country
None of the other answers
Explanation
The increasing opportunity costs as you move along a PPF are a result of the resources that are more specialized in the production of one good being used to produce the other good. These resources become less and less productive leading to higher costs. If the two goods are cars and burgers, the more burgers you start to make, the more car mechanics you have to start using to make these burgers (since your resources are fixed). The less productive car mechanics (that is, in the production of burgers) will lead to higher production costs. This is due to the fact that they will earn the same hourly wage as the burger specialists, but produce fewer burgers per hour. The cost of burger production progressively goes up.
Which of the following best explains why a production possibilities frontier would have increasing opportunity costs as we move along its length?
The resources/factors of production become less and less suitable for the new production mix
It is generally more costly for a country to produce capital goods witha fixed number of resources
It is generally more costly for a country to produce consumer goods with a fixed number of resources
Moving along the production possibilities frontier requires an increase in the resources available to a country
None of the other answers
Explanation
The increasing opportunity costs as you move along a PPF are a result of the resources that are more specialized in the production of one good being used to produce the other good. These resources become less and less productive leading to higher costs. If the two goods are cars and burgers, the more burgers you start to make, the more car mechanics you have to start using to make these burgers (since your resources are fixed). The less productive car mechanics (that is, in the production of burgers) will lead to higher production costs. This is due to the fact that they will earn the same hourly wage as the burger specialists, but produce fewer burgers per hour. The cost of burger production progressively goes up.