Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes.A movement along the production possibilities boundary could be caused by
A)the employment of previously idle resources.
B)technological progress.
C)the growth of productive capacity.
D)an increase in the labour supply.
E)the reallocation of resources between military and civilian goods.

Question

Quizplus · Accepted Answer

A movement along the production possibilities boundary can be caused by the reallocation of resources between military and civilian goods. This means that the economy can produce more of one type of good by reducing the production of the other type of good, without any increase in productive capacity or technological progress. The other choices listed could shift the entire production possibilities boundary outward, but would not cause a movement along the boundary.

Consider a Production Possibilities Boundary Showing the Quantity of Military