If North Korea is currently producing at efficiency,and it proceeds to increase the size of its military,then,as long as nothing else changes,its
A)Production possibilities curve will shift outward.
B)Production possibilities curve will shift inward.
C)Production of nonmilitary goods will increase.
D)Production of nonmilitary goods will decrease.

Question

Quizplus · Accepted Answer

The production possibilities curve represents the maximum combinations of goods and services that a country can produce with the resources available to them. If North Korea increases the size of its military, it will require more resources, such as labor and raw materials, to maintain and expand its military capabilities. This means there will be fewer resources available for the production of nonmilitary goods and services. Therefore, the production of nonmilitary goods will decrease, shifting the production possibilities curve inward.

If North Korea Is Currently Producing at Efficiency,and It Proceeds