Consider a production possibilities boundary showing the possible combinations of military goods and civilian goods that a country can produce.Suppose that the country is currently at a point on the boundary.If the production of military goods is increased,the production of civilian goods will necessarily
A)increase.
B)increase at a decreasing rate.
C)decrease.
D)increase at a increasing rate.
E)remain the same.

Question

Quizplus · Accepted Answer

The production possibility frontier represents the maximum potential output with a given set of resources and technology. It implies that producing more military goods will require shifting resources away from producing civilian goods. Therefore, if the country is currently producing at a point on the frontier and it wants to produce more military goods, it will have to move along the frontier and reduce the production of civilian goods. Hence, the production of civilian goods will decrease.

Consider a Production Possibilities Boundary Showing the Possible Combinations of Military