Question
The statement "Resources employed in producing X are better suited to making Y " is another way of saying
a. resources have no opportunity cost.
b.the production possibilities frontier is “bowed out.”
c. resources are unproductive.
d. the production possibilities frontier is “bowed in.”
e. the production possibilities frontier is a straight line.
a. resources have no opportunity cost.
b.the production possibilities frontier is “bowed out.”
c. resources are unproductive.
d. the production possibilities frontier is “bowed in.”
e. the production possibilities frontier is a straight line.
Ask by Dawson Deleon. in the United States
Mar 21,2025
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Tutor-Verified Answer
Answer
The production possibilities frontier is “bowed out.”
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Mind Expander
The statement suggests that the resources used for producing good X could yield greater benefits if they were allocated to produce good Y instead. This concept aligns with the idea of increasing opportunity costs, meaning that as you produce more of one good, the resources that are allocated away from another good are less effective at producing it. This gives shape to the production possibilities frontier (PPF), which typically curves outward, reflecting the reality of resource specialization.
In other words, the concept also indicates that resources are not equally efficient across all production activities. When moving from producing one good to another, the opportunity cost increases—that’s why we see that “bowed out” shape in the PPF, representing diminishing returns of reallocating resources. Just like trying to bake cookies with a frying pan doesn’t quite yield the same results as with an oven!