Final answer:
In a concave slope PPF, the rising opportunity cost reflects decreasing efficiency as resources are reallocated from one good to another, demonstrating the law of increasing opportunity cost, alongside concepts of productive and allocative efficiency.
Step-by-step explanation:
In a concave slope Production Possibilities Frontier (PPF), the rising opportunity cost reflects decreasing efficiency.The concept behind this behavior is the law of increasing opportunity cost, which dictates that as the production of a good or service increases, the marginal opportunity costs of producing that good also increase. This principle is illustrated by a concave PPF, where resource additions to one good, such as education, show an increasing opportunity cost as we move from left to right along the horizontal axis. The initial increase in opportunity cost is minimal but grows with further resource allocation.
Conversely, when resources are invested in another good like healthcare, the slope of the PPF is steeper near the horizontal-axis intercept owing to larger initial declines in opportunity cost that gradually diminish. Through the PPF's curvature, economics demonstrates not only productive efficiency but also allocative efficiency, emphasizing the society's ideal distribution of resources for differing goods based on preferences and trade-offs.