Question

when the production possibilities curve is bowed out, resources are:
a. increasing as more of one good is produced.
b. equally well - suited to production of both goods.
c. not equally suited to the production of both types of goods.
d. not being used efficiently.

Explanation:

A bowed-out production possibilities curve reflects increasing opportunity cost, which occurs when resources are not equally suited to producing both goods. As an economy shifts production from one good to another, it must use resources that are less and less appropriate for the new good, raising the opportunity cost. Option a is incorrect because resources are fixed in the model; option b would lead to a straight-line curve; option d relates to points inside the curve, not the curve's shape.

Answer:

c. not equally suited to the production of both types of goods.