Home » Uncategorized » a production possibilities frontier with a bowed outward shape indicates. The negative slope of the PPCs indicate that, in order to increase the output of one good, a country has to reduce the output of the other good. Properly label each point. The economy produces 140,000 apples and zero oranges. C. increasing opportunity costs. D. constant opportunity costs. The PPF is bowed inward with a reduction in the opportunity cost for an increasing level of production. Scarcity implies that a production possibilities curve is downward sloping; the law of increasing opportunity cost implies that it will be bowed out, or concave, in shape. Using the 4-point curved line drawing tool, draw a curve connecting these points Label this curve PPC. The production possibility curve (PPC) is a two dimensional model, showing how resources can be used to produce two different goods or services or types of good and services. We can draw the PPC on the basis of above schedule. You've reached the end of your free preview. The production possibility curve bows outward. TERM Spring '14; TAGS Macroeconomics, Unemployment. Label this curve 'PPC'. It is also known as transformation curve. The production possibilities curve is bowed in shape because of the law of increasing opportunity cost, which explains the idea that the more units of a … The bowed-out curve of Figure 2.5 “The Combined Production Possibilities Curve for Alpine Sports” becomes smoother as we include more production facilities. What the Shape of the Curve Tells You . increasing opportunity costs. Carefully follow the instructions above, and only draw the required objects. Want to read all 12 pages? The highest point on the curve is when you only produce one good, on the y-axis, and zero of the other, on the x-axis. On the chart, that is Point A. The shape of this outward bowed PPC is due to A. decreasing opportunity costs. The difference between the shapes of the PPCs as we can see from the above examples, depends on the opportunity cost. constant opportunity costs. The shape of this outward bowed PPC is due to C. increasing opportunity costs. Properly label each point. 2.) The shape of this outward bowed PPC is due to decreasing opportunity costs. There are two reasons why economists argue that the PPC must be bowed out. Label this curve Carefuly towow the instructions above, and only draw the required abjects The shape of this outward bowed PPC is due to O A. increased production eficiency O B. increasing opportunity costs. a production possibilities frontier with a bowed outward shape indicates. Using the 4-point curved Nne drewing tool, draw a curve connecting these points. Carefully follow the instructions above, and only draw the required objects. Uncategorized. B. increased production efficiency. 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