If a nation is initially on its production possibilities curve, then it can increase its production of one good only by
A) decreasing the production of the other good.
B) increasing the production of the other good.
C) holding constant the production of the other good.
D) decreasing the price of the other good.

Question

Quizplus · Accepted Answer

When a nation is on its production possibilities curve, it is using all its resources efficiently. To produce more of one good, it must reallocate resources from the production of another good, thus decreasing its production.

If a Nation Is Initially on Its Production Possibilities Curve