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What is the term called for increasing opportunity costs as you reach the extremes of a cruved PPF? A. Intertemporal opportunity costs

B. Decreasing marginal opportunity costs
C. Increasing marginal opportunity costs
D. Constant marginal opportunity costs

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Final answer:

The term for the pattern of increasing opportunity costs as production levels reach higher points on a curved PPF is 'increasing marginal opportunity costs,' which is part of the broader economic principle known as the law of increasing opportunity cost.

Step-by-step explanation:

The term for increasing opportunity costs as you reach the extremes of a curved Production Possibilities Frontier (PPF) is increasing marginal opportunity costs. This concept, known as the law of increasing opportunity cost, states that as production of a good or service expands, the cost of producing an additional unit rises. This occurs because not all resources are equally suited to producing every type of good or service. For instance, to substantially reduce crime, a significant amount of resources like police and security must be devoted, resulting in a high opportunity cost. The PPF curve illustrates this increase in cost: it is relatively flat near the vertical-axis intercept as more resources are added to education, indicating a small initial opportunity cost that grows over time. Conversely, the slope is steep near the horizontal-axis intercept for healthcare, suggesting large initial declines in opportunity cost that diminish gradually.

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