When a nation is producing on its production possibilities frontier, if more resources are used to produce one good, then the production of other goods
A) must decrease.
B) must increase.
C) might increase if the nation can produce more efficiently.
D) must remain the same.
E) must change, but it might increase or decrease.

Question

Quizplus · Accepted Answer

When more resources are used to produce one good, the opportunity cost of producing the other goods increases, leading to a decrease in their production. Therefore, the best answer is A - the production of other goods must decrease.

When a Nation Is Producing on Its Production Possibilities Frontier