Carefully follow the instructions above, and only draw the required objects. Properly label each point. 2.) Scarcity implies that a production possibilities curve is downward sloping; the law of increasing opportunity cost implies that it will be bowed out, or concave, in shape. The economy produces 140,000 apples and zero oranges. Label this curve 'PPC'. The shape of this outward bowed PPC is due to A. decreasing opportunity costs. Using the 4-point curved Nne drewing tool, draw a curve connecting these points. The production possibilities curve is bowed in shape because of the law of increasing opportunity cost, which explains the idea that the more units of a … The bowed-out curve of Figure 2.5 “The Combined Production Possibilities Curve for Alpine Sports” becomes smoother as we include more production facilities. What the Shape of the Curve Tells You . It is also known as transformation curve. The shape of this outward bowed PPC is due to decreasing opportunity costs. a production possibilities frontier with a bowed outward shape indicates. increasing opportunity costs. The production possibility curve (PPC) is a two dimensional model, showing how resources can be used to produce two different goods or services or types of good and services. Home » Uncategorized » a production possibilities frontier with a bowed outward shape indicates. We can draw the PPC on the basis of above schedule. The highest point on the curve is when you only produce one good, on the y-axis, and zero of the other, on the x-axis. Properly label each point. You've reached the end of your free preview. Label this curve Carefuly towow the instructions above, and only draw the required abjects The shape of this outward bowed PPC is due to O A. increased production eficiency O B. increasing opportunity costs. C. increasing opportunity costs. constant opportunity costs. Carefully follow the instructions above, and only draw the required objects. Want to read all 12 pages? The production possibility curve bows outward. The negative slope of the PPCs indicate that, in order to increase the output of one good, a country has to reduce the output of the other good. Using the 4-point curved line drawing tool, draw a curve connecting these points Label this curve PPC. B. increased production efficiency. The shape of this outward bowed PPC is due to C. increasing opportunity costs. Uncategorized. D. constant opportunity costs. On the chart, that is Point A. The PPF is bowed inward with a reduction in the opportunity cost for an increasing level of production. TERM Spring '14; TAGS Macroeconomics, Unemployment. There are two reasons why economists argue that the PPC must be bowed out. The difference between the shapes of the PPCs as we can see from the above examples, depends on the opportunity cost. Production Possibility Curve (PPC) is the locus (the path of a moving point) of various combinations of two commodities which can be produced with given level of resources and technology.