Question

1 pts Question 13 PPFs are usually bowed out because: all resources are not equally adaptable in the production of all goods the more resources a society uses to produce one good, the fewer resources it has available to produce another good. all resources are equally adaptable in the production of all goods all PPts have a negative slope Question 14 1 pts The effect of an increase in productive inputs such as labor and capital can be shown by: an inward or leftward shift of the PPF an outward or rightward expansion of the PPF a movement from one point to another along the PPF a point inside the PPF

Answer 1

Question 13) PPFs are usually bow down because the more resources of society uses to produce one word, the fewer resources it has available to produce another good. So due to this, the opportunity cost of producing the good which is of lesser quantity (good for which the allocated resources are less) keeps on increasing. So, we can say that the PPFs are bowed out because as we move along the PPF, the opportunity cost of producing a good increases. So, option 2 is the correct answer.

Question 14) The effect of an increase in productive inputs such as labour and capital can be shown by an outward or rightward expansion of the PPF. This is because the PPF shows all the combinations of output that the economy can produce when it produces in the most efficient manner. As the productive inputs become more productive, the economy will be capable of producing more number of goods, and this will be shown by the outward or rightward expansion of the PPF. So, option 2 is the correct answer.