Suppose we can divide all the goods produced by an economy into two types: consumption goods and capital goods. Capital goods,
such as machinery, equipment, and computers, are goods used to produce other goods. Is it likely that the production possibilities frontier in this situation would be a straight line:A. The production possibilities frontier would likely be a straight line because not all resources are equally well suited to produce both consumption and capital goods. B. The production possibilities frontier would likely be bowed out because not all resources are equally well suited to produce both consumption and capital goods. C. The production possibilities frontier would likely be a straight line because resources are likely equally well suited to produce both consumption and capital goods. D. The production possibilities frontier would likely be bowed out because resources are likely equally well suited to produce both consumption and capital goods.
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