Referring to a production possibilities curve and the goods being compared,depict the economic event.Suppose the United States was at full employment in 2003 just before invading Iraq.Although the war was won quickly,winning the peace took a decade (guns vs.butter).
A)A movement from a point inside the curve to a point on or near the curve
B)A movement from a point on or near the curve to a point inside the curve
C)A shift in the entire curve to the right (outward)
D)A shift in the entire curve to the left (inward)
E)A movement along the curve

Question

Quizplus · Accepted Answer

The scenario describes a reallocation of resources from civilian goods ("butter") to military goods ("guns"), which is represented by a movement along the production possibilities curve.

Referring to a Production Possibilities Curve and the Goods Being