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Question

If an economy has to sacrifice increasing amounts of good X for each unit of good Y produced, then its production possibilities curve is:

which one of the below would be the answer

bowed out from the origin.

bowed in toward the origin.

a straight line.

a vertical line.

Answer 1

Bowed out from the origin - you just have standard PPC curve in this case.

Answer 2

Placing good Y on the vertical axis, the PPC will be in a concave shape. this is because the gradient of the PPC indicates the opportunity cost and thus the gradient will gradually increase.