When a nation is producing on its production possibilities frontier,if more resources are used to produce one good,then the production of other goods
A)must decrease.
B)might increase if the nation can produce more efficiently.
C)must change,but it might increase or decrease.
D)must increase.
E)must remain the same.

Question

Quizplus · Accepted Answer

When a nation is producing on its production possibilities frontier, it is operating at maximum efficiency. Therefore, reallocating resources to produce more of one good will result in a decrease in the production of other goods due to the opportunity cost.

When a Nation Is Producing on Its Production Possibilities Frontier,if