A nation's production possibilities curve is "bowed out" from the origin because:Multiple Choiceresources are scarce.resources are not equally efficient in producing every good.the originator of the idea drew it this way and modern economists follow this convention.wants are virtually unlimited.

In drawing the production possibilities curve we assume that:Multiple Choiceunemployment exists.economic resources are unlimited.technology is fixed.wants are limited.

Why does the downward-sloping production possibilities curve imply that factors of production are scarce?

A typical concave production possibilities curve implies:Multiple Choicethat economic resources are scarce.that society must choose among various attainable combinations of goods.all of these are correct.increasing opportunity costs.

The production possibility frontier shows the maximum output a nation can produce with available resources.Group of answer choicesTrueFalse

What does a production possibility frontier with a bowed outward shape indicate?  The possibility of inefficient production You Answered  Decreasing opportunity costs as more and more of one good is produced   Constant opportunity costs as more and more of one good is produced Correct answer  Increasing opportunity costs as more and more of one good is produced