Question

part 2 (1 pt)
which of the following give the bowed-outward shape to the ppf?
choose one or more:
a. the law of decreasing opportunity cost
b. the law of increasing opportunity cost
c. the law of increasing specialization
d. the concept of ceteris paribus

Explanation:

The bowed-out shape of the Production Possibilities Frontier (PPF) arises because as an economy produces more of one good, it must reallocate resources that are less suited to that good's production, leading to higher opportunity costs per additional unit. This is defined by the law of increasing opportunity cost. The law of decreasing opportunity cost would create a bowed-in PPF. Increasing specialization relates to efficiency but does not directly cause the bowed-out shape, and ceteris paribus is a general assumption for economic models, not the driver of the PPF's shape.

Answer:

B. the law of increasing opportunity cost