Question

When the production possibilities curve is concave from the origin, then resources can be used:________

a. equally well for both goods.
b. as more of one good is produced, more of the other good is sacrificed.
c. the nation can produce more of both goods.
d. the good on the horizontal axis is a free good.
e. the good on the vertical axis is a free good.

Answer 1

B

Step-by-step explanation:

Answer 2

b

Step-by-step explanation:

The Production possibilities curve (PPC) is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.