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economy causes the production possibilities curve to bow outward

economy causes the production possibilities curve to bow outward
1.The production possibilities curve is an important model of how much an economy can produce given resources and technology.
a. What characteristic of the economy causes the production possibilities curve to bow outward. Explain.
b. Using the graph on page 7 on the online text (Bouman), what is the opportunity cost of producing more roses when the country moves from point B to point A? In other words, if the country wants to produce 80 more roses, how many guns does it have to give up? (numerical answer required)
2. The Circular Flow diagram is model of how the economy works. Explain how the model would change if the following events ocurred:
a. Households increase savings.
b. Drastic spending cuts are implemented by the government.
3. The online textbook identifies three types of economic systems, which one closely resembles the US economy. Explain and support your answer.
Case assignment expectations:
Use information from the modular background readings as well as any good quality resource you can find. Make sure you cite all resources you use and provide a reference list at the end of your paper.
LENGTH: 3-4 typed and double-spaced pages.
In addition to the overall quality, depth, grammar, and organization of the paper, the following will, in particular, be assessed:
1. The level of your understanding of the key concepts of the major economic models.
2. Some in-text references to modular background readings (APA formatting not required)
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