A move from inside the production possibilities boundary to the boundary itself could be caused by
A)the employment of previously idle resources.
B)a reallocation of resources from military to civilian goods.
C)technological progress.
D)an increase in the labour supply.
E)an improvement in the government's ability to control its spending.

Question

Quizplus · Accepted Answer

Moving from inside the production possibilities boundary to the boundary itself signifies that all available resources are being utilized efficiently. Therefore, the only possible cause for this move is the employment of previously idle resources. This could be due to various reasons such as an increase in demand or a change in technology which has made previously unprofitable resources profitable.

A Move from Inside the Production Possibilities Boundary to the Boundary