Final answer:
The PPF curve from point A to point B is relatively flat because reallocating marginal resources from healthcare (which is providing minimal additional health gains) to education (which had no resources initially) leads to relatively large gains in education compared to the minimal loss in healthcare.
Step-by-step explanation:
To understand why the Production Possibilities Frontier (PPF) is curved, we look at an extreme scenario—point A—where all resources are dedicated to healthcare with none for education. This results in absurdities like children seeing a doctor daily whether sick or not, and no one receiving any education. As we move from point A to point B, resources are reallocated from healthcare to education. This reallocation results in only a slight decrease in health benefits because the marginal dollars in healthcare were yielding minimal additional health gains. Conversely, the same marginal dollars significantly enhance education, as it was previously resource-deprived. The PPF curve between points A and B is therefore relatively flat, reflecting the small decline in health relative to the substantial increase in educational benefits.