A PPC is usually concave (bowed out) to the origin because

the marginal rate of transformation is constantCorrect answerYour answerthe marginal rate of transformation fallsCorrect answerYour answerresources are unlimitedCorrect answerYour answerthe marginal rate of transformation increases as more of one good is producedCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Resources are not equally suited to both goods, so each extra unit of one good costs more and more of the other.
A rising MRT means the slope gets steeper along the curve, which makes it concave.

Worth noting

A constant MRT would make the PPC a straight line, not a curve.

Concept: Shape of the PPC and rising MRT
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe production possibility curve

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Ten questions from Central Problems & the PPC, at your own pace.

A PPC is usually concave (bowed out) to the origin because

Explanation