-Refer to Exhibit 2-1.The movement from point A to point B is a movement from
A) a productive efficient point to a productive inefficient point.
B) a point with more guns and less butter to a point with more butter and even more guns.
C) a productive efficient point to another productive efficient point.
D) a productive inefficient point to a productive efficient point.

Question

-Refer to Exhibit 2-1.The movement from point A to point B is a movement from
A) a productive efficient point to a productive inefficient point. 
B) a point with more guns and less butter to a point with more butter and even more guns. 
C) a productive efficient point to another productive efficient point. 
D) a productive inefficient point to a productive efficient point.

Quizplus · Accepted Answer

The movement from point A to point B on a production possibility frontier (PPF) typically represents a shift from one efficient production point to another, where resources are reallocated to produce different quantities of the two goods without sacrificing efficiency.