a bowed production possibilities curve PPC indicates, a. trade off between the 2 goods is not constant b. inefficient production c. only 1 good is always being produced d. changing technology.
which one?????
The correct answer is (a) trade-off between the two goods is not constant.
To understand why a bowed production possibilities curve (PPC) represents a trade-off between the two goods that is not constant, we need to first understand what a PPC represents.
A PPC graphically shows the various combinations of two goods that can be produced given the available resources and technology. The curve represents the maximum possible production of one good given the current production of the other good.
When a PPC is bowed outward, it indicates that the opportunity cost of producing additional units of one good increases as more of that good is produced. This means that the trade-off between the two goods is not constant.
For example, let's say we have an economy producing two goods: cars and computers. Initially, the economy is producing more cars and fewer computers. As the production of cars increases and the economy moves along the PPC, the resources that are best suited for producing cars are being utilized, leading to a decrease in the production of computers. This represents a trade-off between the two goods, where more cars are produced at the expense of producing fewer computers.
Therefore, option (a) is the correct answer: a bowed PPC indicates that the trade-off between the two goods is not constant.