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.

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.

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.

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.

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.

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.

would be the most appropriate point since it has a higher quantity of capital goods than point . Capital goods have a greater impact on the long term growth of an economy.

would be the most appropriate point since it has a higher quantity of capital goods than point . Capital goods have a greater impact on the long term growth of an economy.

The diagram shows an increase in the potential productive capacity of the consumer good production without a corresponding increase in the productive capacity of capital good production. The best answer then is that whatever change happened affected only the capacity to produce consumer goods. Labour force increases would increase the capacity to produce both goods, and so would an economic boom.

The diagram shows an increase in the potential productive capacity of the consumer good production without a corresponding increase in the productive capacity of capital good production. The best answer then is that whatever change happened affected only the capacity to produce consumer goods. Labour force increases would increase the capacity to produce both goods, and so would an economic boom.