If the United States can increase its production of automobiles without decreasing its production of any other good, the United States must have been producing at a point
A) beyond its PPF.
B) on its PPF.
C) within its PPF.
D) None of the above is correct because increasing the production of one good without decreasing the production of another good is impossible.

Question

Quizplus · Accepted Answer

The United States must have been producing within its Production Possibility Frontier (PPF), as this indicates that there are underutilized resources or inefficiencies that allow for an increase in production of one good without sacrificing the production of another.

If the United States Can Increase Its Production of Automobiles