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    Question

    What is depicted by the concave shape of the production

    possibilities curve?
    A Law of increasing opportunity cost Correct Answer Incorrect Answer
    B The production is inefficient Correct Answer Incorrect Answer
    C The production is unattainable Correct Answer Incorrect Answer
    D The demand is relatively elastic Correct Answer Incorrect Answer

    Solution

    The bowed-out shape of the production possibilities curve signifies increasing opportunity costs as resources are reallocated between goods, highlighting the trade-offs inherent in resource allocation.

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