How does the theory of comparative advantage relate to production possibility cu

Question

How does the theory of comparative advantage relate to production possibility curves? The theory of comparative advantage underlies the shape of the production possibility curve As less and less of a good is produced. Resources that have less of a comparative advantage are brought into the production of a good, causing the production possibility curve to be bowed outward The theory of comparative advantage underlies the shape of the production possibility curve As more and more of a good is produced. Resources that have less of a comparative advantage are brought into the production of a good, causing the production possibility curve to be bowed outward The theory of comparative advantage underlies the shape of the production possibility curve As more and more of a good is produced. Resources that have more of a comparative advantage are brought into the production of a good, causing the production possibility curve to be bowed outward The theory of comparative advantage underlies the shape of the production possibility curve As less and less of a good is produced. Resources that have more of a comparative advantage are brought into the production of a good, causing the production possibility curve to be bowed outward.

Explanation / Answer

OPTION B. THE THEORY OF COMPARATIVE ADVANTAGE UNDERLIES THE SHAPE OF THE PRODUCTION POSSIBILITY CURVE. AS MORE AND MORE OF A GOOD IS PRODUCED RESOURCES THAT HAVE LESS OF A COMPARATIVE ADVANTAGE ARE BROUGHT INTO THE PRODUCTION OF A GOOD, CAUSING THE PPC TO BE BOWED OUTWARD.

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