What is bowed-out shape, Macroeconomics

Assignment Help:

Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?  

The curve is bowed-out because some resources are better suited for the production of one good (e.g. butter) rather than the other (e.g. guns).  And as we try to produce more and more of the other good (e.g. guns), it takes enhancing amounts of resources to do so and therefore we incur increasing opportunity costs.

 


Related Discussions:- What is bowed-out shape

Deficient demand, ASuppose an economy has overbuilt and suffers from excess...

ASuppose an economy has overbuilt and suffers from excess capacity A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetar

Senator is considering tax, You are an assistant to a senator who chairs an...

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on relate

Money and Banking, explain with illustration the meaning of credit creatio...

explain with illustration the meaning of credit creation in commercial banks

Arc price elasticity of demand, The Stop decay company sells an electric to...

The Stop decay company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decay fighter, redu

Why do some countries have a high real per capita income, Why do some count...

Why do some countries have a high real per capita income? High standard of living within the industrialized nations consider to be largely because of the high productivity of

Adjustment to equilibrium, reason why the change in equilibrium of output i...

reason why the change in equilibrium of output is greater than the change in initial invest ..

U.s. department of agriculture, The U.S. Department of Agriculture, nass.us...

The U.S. Department of Agriculture, nass.usda.gov, publishes charts on the prices of farm products. Go to the USDA home page and select Charts and Maps and then Agricultural Prices

GDP, Whenever real GDP declines, nominal GDP must also declin

Whenever real GDP declines, nominal GDP must also decline

Interest rates with different maturities, Including different interest rate...

Including different interest rates with different maturities would complicate the models however it wouldn't buy you very much. Because interest rates with different maturities are

National income, Y= C+I+G C= 100,000000+ 0.4yd I= 400,00000 T= 0.2+60m G= ...

Y= C+I+G C= 100,000000+ 0.4yd I= 400,00000 T= 0.2+60m G= 750, 000000 Calculate equilibrium level of income

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd