Assume an economy is operating at some point on its production possibilities curve which shows civilian and military goods.If the output of military goods is increased, the output of civilian goods:
A)will remain unchanged.
B)may be either increased or decreased.
C)must be decreased.
D)must also be increased.

Question

Quizplus · Accepted Answer

The production possibilities curve represents the trade-off between two goods. If an economy is operating on the curve, increasing the output of one good (military goods) requires decreasing the output of the other good (civilian goods) due to limited resources.

Assume an Economy Is Operating at Some Point on Its